Should You Buy JDS Uniphase Corp (NASDAQ:JDSU)?

Is JDS Uniphase Corp (NASDAQ:JDSU) undervalued? Money managers are getting more optimistic. The number of bullish hedge fund positions rose by 2 recently.

In the eyes of most shareholders, hedge funds are perceived as underperforming, outdated financial tools of the past. While there are more than 8000 funds trading at the moment, we at Insider Monkey hone in on the aristocrats of this group, about 450 funds. It is widely believed that this group oversees the lion’s share of the smart money’s total capital, and by watching their highest performing investments, we have spotted a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

JDS Uniphase CorpEqually as important, bullish insider trading sentiment is another way to parse down the marketplace. As the old adage goes: there are plenty of stimuli for an insider to cut shares of his or her company, but only one, very simple reason why they would buy. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if “monkeys” understand where to look (learn more here).

With all of this in mind, it’s important to take a look at the key action surrounding JDS Uniphase Corp (NASDAQ:JDSU).

Hedge fund activity in JDS Uniphase Corp (NASDAQ:JDSU)

At the end of the fourth quarter, a total of 21 of the hedge funds we track were bullish in this stock, a change of 11% from the third quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings considerably.

Of the funds we track, Citadel Investment Group, managed by Ken Griffin, holds the most valuable position in JDS Uniphase Corp (NASDAQ:JDSU). Citadel Investment Group has a $70 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Manatuck Hill Partners, managed by Mark Broach, which held a $20 million position; 3% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions include Cliff Asness’s AQR Capital Management, Brian Ashford-Russell and Tim Woolley’s Polar Capital and Steven Cohen’s SAC Capital Advisors.

Consequently, some big names have been driving this bullishness. Manatuck Hill Partners, managed by Mark Broach, initiated the biggest position in JDS Uniphase Corp (NASDAQ:JDSU). Manatuck Hill Partners had 20 million invested in the company at the end of the quarter. Philip Hempleman’s Ardsley Partners also made a $7 million investment in the stock during the quarter. The following funds were also among the new JDSU investors: Scott Fine and Peter Richards’s Empire Capital Management, Anand Parekh’s Alyeska Investment Group, and Glenn Russell Dubin’s Highbridge Capital Management.

What do corporate executives and insiders think about JDS Uniphase Corp (NASDAQ:JDSU)?

Insider buying is best served when the company in focus has seen transactions within the past 180 days. Over the last 180-day time frame, JDS Uniphase Corp (NASDAQ:JDSU) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).

With the results shown by the aforementioned research, retail investors should always monitor hedge fund and insider trading sentiment, and JDS Uniphase Corp (NASDAQ:JDSU) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!