Is QLogic Corporation (NASDAQ:QLGC) undervalued? Hedge funds are in a bullish mood. The number of bullish hedge fund bets inched up by 5 in recent months.
In today’s marketplace, there are plenty of indicators market participants can use to track publicly traded companies. A pair of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can outclass the S&P 500 by a superb margin (see just how much).
Just as important, optimistic insider trading activity is another way to break down the financial markets. Just as you’d expect, there are many reasons for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the valuable potential of this strategy if shareholders know what to do (learn more here).
With all of this in mind, it’s important to take a peek at the latest action regarding QLogic Corporation (NASDAQ:QLGC).
How are hedge funds trading QLogic Corporation (NASDAQ:QLGC)?
Heading into Q2, a total of 19 of the hedge funds we track were long in this stock, a change of 36% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings substantially.
Of the funds we track, Citadel Investment Group, managed by Ken Griffin, holds the most valuable position in QLogic Corporation (NASDAQ:QLGC). Citadel Investment Group has a $43.1 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Cliff Asness of AQR Capital Management, with a $17.2 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include Chuck Royce’s Royce & Associates, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Jim Simons’s Renaissance Technologies.
As aggregate interest increased, key hedge funds have jumped into QLogic Corporation (NASDAQ:QLGC) headfirst. SG Capital Management, managed by Ken Grossman and Glen Schneider, established the most valuable position in QLogic Corporation (NASDAQ:QLGC). SG Capital Management had 5.6 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also made a $2.4 million investment in the stock during the quarter. The other funds with brand new QLGC positions are Dmitry Balyasny’s Balyasny Asset Management, Steven Cohen’s SAC Capital Advisors, and David Cohen and Harold Levy’s Iridian Asset Management.
How are insiders trading QLogic Corporation (NASDAQ:QLGC)?
Insider purchases made by high-level executives is particularly usable when the primary stock in question has experienced transactions within the past six months. Over the last six-month time period, QLogic Corporation (NASDAQ:QLGC) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to QLogic Corporation (NASDAQ:QLGC). These stocks are TriQuint Semiconductor (NASDAQ:TQNT), Power Integrations Inc (NASDAQ:POWI), InvenSense Inc (NYSE:INVN), Diodes Incorporated (NASDAQ:DIOD), and MEMC Electronic Materials, Inc. (NYSE:WFR). This group of stocks are in the semiconductor – integrated circuits industry and their market caps resemble QLGC’s market cap.