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How Key Technology, Inc. (KTEC) Stacks Up Against Its Peers

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Reputable billionaire investors such as Nelson Peltz and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won’t accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.

Key Technology, Inc. (NASDAQ:KTEC) investors should pay attention to an increase in support from the world’s most successful money managers in recent months. There were 5 hedge funds in our database with KTEC positions at the end of the previous quarter. At the end of this article we will also compare KTEC to other stocks including UCP Inc (NYSE:UCP), Sophiris Bio Inc (NASDAQ:SPHS), and Digital Turbine Inc (NASDAQ:APPS) to get a better sense of its popularity.

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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

goir/Shutterstock.com

goir/Shutterstock.com

Now, we’re going to check out the recent action surrounding Key Technology, Inc. (NASDAQ:KTEC).

How have hedgies been trading Key Technology, Inc. (NASDAQ:KTEC)?

At Q3’s end, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a change of 20% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in KTEC over the last 5 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).

KTEC Chart

When looking at the institutional investors followed by Insider Monkey, Brian Olson’s Kokino LLC has the number one position in Key Technology, Inc. (NASDAQ:KTEC), worth close to $13.4 million, comprising 54% of its total 13F portfolio. Sitting at the No. 2 spot is Rutabaga Capital Management, led by Peter Schliemann, holding a $1.2 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining hedge funds and institutional investors that are bullish encompass Jim Simons Renaissance Technologies, one of the largest hedge funds in the world, Chuck Royce’s Royce & Associates and Mario Gabelli’s GAMCO Investors. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

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