Xerox Corporation
Thesis
Xerox is a top-ten position for the firm, particularly after the market reacted negatively to its acquisition of Affiliated Computer Services, causing a significant drop in stock price. This presents a buying opportunity as the company has strong fundamentals and growth potential.
Did it work?
The market's negative reaction to the ACS acquisition did occur, but the core of the thesis — that the deal would unlock strong fundamentals and growth — was subsequently invalidated: Xerox's services-led growth never materialized, revenue declined for years after the deal closed, and the company ultimately spun off the services business as Conduent in 2017, effectively unwinding the acquisition thesis. With no price data or stated horizon available, confidence is low, but the thesis's central premise was decisively broken rather than confirmed.