Unisys Corporation (NYSE:UIS) was in 19 hedge funds’ portfolio at the end of the first quarter of 2013. UIS has seen a decrease in enthusiasm from smart money recently. There were 20 hedge funds in our database with UIS holdings at the end of the previous quarter.
In the 21st century investor’s toolkit, there are a multitude of methods market participants can use to analyze the equity markets. A couple of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite fund managers can outpace the S&P 500 by a very impressive margin (see just how much).
Equally as important, bullish insider trading sentiment is another way to break down the investments you’re interested in. There are a variety of reasons for an upper level exec to get rid of shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this strategy if piggybackers know where to look (learn more here).
With these “truths” under our belt, it’s important to take a glance at the key action surrounding Unisys Corporation (NYSE:UIS).
What have hedge funds been doing with Unisys Corporation (NYSE:UIS)?
At the end of the first quarter, a total of 19 of the hedge funds we track were long in this stock, a change of -5% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their stakes significantly.
Of the funds we track, Steven Cohen’s SAC Capital Advisors had the largest position in Unisys Corporation (NYSE:UIS), worth close to $25.7 million, comprising 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is James H. Litinsky of JHL Capital Group, with a $21.1 million position; 1.5% of its 13F portfolio is allocated to the stock. Other hedge funds with similar optimism include Chuck Royce’s Royce & Associates, Jim Simons’s Renaissance Technologies and Cliff Asness’s AQR Capital Management.
Due to the fact that Unisys Corporation (NYSE:UIS) has witnessed a declination in interest from the smart money, it’s safe to say that there exists a select few fund managers who were dropping their positions entirely at the end of the first quarter. Intriguingly, Eric Bannasch’s Cadian Capital said goodbye to the biggest position of all the hedgies we key on, worth an estimated $2.2 million in stock., and D. E. Shaw of D E Shaw was right behind this move, as the fund sold off about $0.9 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 1 funds at the end of the first quarter.
How are insiders trading Unisys Corporation (NYSE:UIS)?
Insider purchases made by high-level executives is most useful when the company in question has experienced transactions within the past half-year. Over the latest 180-day time period, Unisys Corporation (NYSE:UIS) has seen zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Unisys Corporation (NYSE:UIS). These stocks are Acxiom Corporation (NASDAQ:ACXM), Sykes Enterprises, Incorporated (NASDAQ:SYKE), Radware Ltd. (NASDAQ:RDWR), iGATE Corporation (NASDAQ:IGTE), and EPAM Systems Inc (NYSE:EPAM). This group of stocks are in the information technology services industry and their market caps are closest to UIS’s market cap.