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.

Is JDS Uniphase Corp (JDSU) Going to Burn These Hedge Funds?

Page 1 of 2

Now, according to many traders, hedge funds are perceived as bloated, old investment tools of an era lost to time. Although there are over 8,000 hedge funds trading in present day, this site aim at the bigwigs of this group, close to 525 funds. It is widely held that this group has its hands on the lion’s share of all hedge funds’ total assets, and by keeping an eye on their highest quality equity investments, we’ve come up with a few investment strategies that have historically beaten the S&P 500. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (find the details here).

Equally as necessary, positive insider trading sentiment is another way to analyze the marketplace. Just as you’d expect, there are a number of incentives for an upper level exec to cut shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this method if investors know what to do (learn more here).

JDS Uniphase Corp

Furthermore, let’s analyze the latest info for JDS Uniphase Corp (NASDAQ:JDSU).

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

At Q2’s end, a total of 20 of the hedge funds we track were bullish in this stock, a change of -9% from one quarter earlier. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their stakes meaningfully.

When using filings from the hedgies we track, Andrew Sandler’s Sandler Capital Management had the biggest call position in JDS Uniphase Corp (NASDAQ:JDSU), worth close to $14.3 million, comprising 0.5% of its total 13F portfolio. The second largest stake is held by Steven Cohen of SAC Capital Advisors, with a $12.1 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedgies that hold long positions include Scott Fine and Peter Richards’s Empire Capital Management, Jim Simons’s Renaissance Technologies and Brian Ashford-Russell and Tim Woolley’s Polar Capital.

Since JDS Uniphase Corp (NASDAQ:JDSU) has witnessed a fall in interest from the top-tier hedge fund industry, we can see that there lies a certain “tier” of hedgies who were dropping their positions entirely last quarter. At the top of the heap, Christopher Zepf and Brian Thonn’s Kingdom Ridge Capital sold off the biggest stake of the 450+ funds we track, valued at an estimated $9.4 million in stock. Charles Clough’s fund, Clough Capital Partners, also sold off its stock, about $9.3 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 2 funds last quarter.

What have insiders been doing with JDS Uniphase Corp (NASDAQ:JDSU)?

Bullish insider trading is particularly usable when the primary stock in question has experienced transactions within the past six months. Over the last half-year time frame, JDS Uniphase Corp (NASDAQ:JDSU) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators 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). This group of stocks belong to the communication equipment industry and their market caps are similar to JDSU’s market cap.

Page 1 of 2
Loading Comments...