Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Crossroads Systems Inc (CRDS), Selectica Inc (SLTC), Visualant, Incorporated (VSUL) In Diker Management’s Line of Acquisitions

Page 1 of 2

Mark N. Diker‘s Diker Management in 13G filings with the SEC has disclosed several changes from its equity portfolio. First off is the fund’s stake in Crossroads Systems Inc (NASDAQ:CRDS), which was increased to 1.58 million shares representing 8.02% of the company’s outstanding common stock from 1.23 million shares held earlier. Next in line is Selectica Inc (NASDAQ:SLTC), whose stake was inched up to 794,497 shares, which represent 9.99% of the outstanding stock. Visualant, Incorporated (OTCMKTS:VSUL) has also gained the fund’s attention, as Diker disclosed a new position containing 10.5 million shares equal to 5.95% of the company. Lastly, Diker also raised its exposure to Cyren Ltd (NASDAQ:CYRN) to about 1.99 million shares, equal to 6.27% of the common stock from 1.63 million shares disclosed earlier.

Crossroads Systems

Founded in 2002, Diker Management generally invests in companies with a market capitalization between $25 million and $750 million. However, an exception to the rule is the fund’s stake in Apple Inc. (NASDAQ:AAPL), which is its second largest holding as of the end of 2014. Most of the fund’s stakes are in the technology sector, which constitutes about 61% of the equity portfolio’s value. Total assets under management amount to around $700 million, while the market value of Diker’s equity portfolio stood at $512.59 million towards the end of the fourth quarter.

Diker’s stake in Apple Inc. (NASDAQ:AAPL) remained unchanged during the fourth quarter at about 643,300 shares valued at $71.0  million. According to an investor letter by David Einhorn of Greenlight Capital, Apple Inc. (NASDAQ:AAPL)’s stellar 30% revenue growth in the December quarter owing to sales of iPhone 6 is slowly going to subside as the contribution of its blockbuster product in the company’s top line continues to slim. His expectations from Apple Watch were merely modest. However, Einhorn still believes that the tech giant is still undervalued and deserves what he calls a ‘premium multiple’. Greenlight held some 8.61 million shares of Apple Inc. (NASDAQ:AAPL) valued at $949.88 million at the end of 2014.

Diker Management’s focus on small-cap stocks is somehow in line with our own strategy. Through our research, we discovered that a portfolio of 15 most popular small cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month between 1999 and 2012. On the other hand, the most popular large cap picks of hedge funds underperformed the index by 7 basis points per month during the same period. In forward tests since August 2012 through March 2015 top small-cap stocks beat the market by a hefty 79.4 percentage points (read the details here). Hence a retail investor needs to isolate himself from the herd and take advantage of the prevalent arbitrage opportunities in the market by concentrating on small-caps.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!