Here is What Hedge Funds Think About JDS Uniphase Corp (JDSU)

Page 1 of 2

Is JDS Uniphase Corp (NASDAQ:JDSU) a safe investment now? The smart money is reducing their bets on the stock. The number of bullish hedge fund positions were cut by 2 in recent months.

At the moment, there are tons of methods market participants can use to analyze stocks. A pair of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can beat their index-focused peers by a very impressive margin (see just how much).

JDS Uniphase CorpJust as beneficial, bullish insider trading sentiment is a second way to break down the stock market universe. Just as you’d expect, there are lots of stimuli for an insider to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the valuable potential of this method if shareholders understand where to look (learn more here).

Now, it’s important to take a gander at the recent action encompassing JDS Uniphase Corp (NASDAQ:JDSU).

How have hedgies been trading JDS Uniphase Corp (NASDAQ:JDSU)?

Heading into Q2, a total of 22 of the hedge funds we track were bullish in this stock, a change of -8% from one quarter earlier. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings substantially.

When looking at the hedgies we track, Empire Capital Management, managed by Scott Fine and Peter Richards, holds the most valuable position in JDS Uniphase Corp (NASDAQ:JDSU). Empire Capital Management has a $31.5 million position in the stock, comprising 3% of its 13F portfolio. Sitting at the No. 2 spot is Israel Englander of Millennium Management, with a $18.8 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Glenn Russell Dubin’s Highbridge Capital Management, Ken Griffin’s Citadel Investment Group and Brian Ashford-Russell and Tim Woolley’s Polar Capital.

Since JDS Uniphase Corp (NASDAQ:JDSU) has experienced falling interest from the smart money, it’s safe to say that there exists a select few funds who sold off their positions entirely last quarter. At the top of the heap, Mark Broach’s Manatuck Hill Partners cut the biggest stake of all the hedgies we watch, worth close to $20.1 million in stock., and SAC Subsidiary of Sigma Capital Management was right behind this move, as the fund dropped about $7.2 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds last quarter.

Insider trading activity in JDS Uniphase Corp (NASDAQ:JDSU)

Bullish insider trading is best served when the company we’re looking at has experienced transactions within the past six months. Over the latest six-month time frame, JDS Uniphase Corp (NASDAQ:JDSU) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to JDS Uniphase Corp (NASDAQ:JDSU). These stocks are Acme Packet, Inc. (NASDAQ:APKT), Exelis Inc (NYSE:XLS), ViaSat, Inc. (NASDAQ:VSAT), Echostar Corporation (NASDAQ:SATS), and Alcatel Lucent SA (ADR) (NYSE:ALU). All of these stocks are in the communication equipment industry and their market caps are closest to JDSU’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!