Markets opened higher on Tuesday after a renewed hope that Great Britain will vote to remain in the European Union. However, investors are on the edge of their seats as the crucial referendum approaches.
Some of the stocks worth watching today are TIER REIT Inc (NYSE:TIER), OSI Systems, Inc. (NASDAQ:OSIS), American Science & Engineering, Inc. (NASDAQ:ASEI), Callaway Golf Co (NYSE:ELY), and Middleburg Financial Corp. (NASDAQ:MBRG). Let’s look into the developments that put these stocks in the spotlight and see what hedge funds from our database think about these stocks.
Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see more details here).
TIER REIT Sells FOUR40 Office Building
TIER REIT Inc (NYSE:TIER) said on Monday that it had completed the sale of its FOUR40 office building located at 440 South LaSalle Street in Chicago, for $191 million. Proceeds from this selling will be used to repay borrowings outstanding on the revolving portion of credit facility and a property mortgage loan. In a statement, TIER REIT’s CEO Scott Fordham said that the company has completed $260 million worth of non-strategic property sales year to date, and it is continuing to sell its non-strategic properties. Just seven funds from our database are long TIER REIT Inc (NYSE:TIER) as of the end of the first quarter. The aggregate value of their stakes amounted to $11.3 million.
OSI Systems Acquires American Science & Engineering
OSI Systems, Inc. (NASDAQ:OSIS) has announced that it reached a definitive agreement to acquire American Science & Engineering, Inc. (NASDAQ:ASEI) for $37.00 per share in cash. The total purchase price is approximately $187 million net of $82 million of AS&E’s cash and cash equivalents. The deal was unanimously approved by the board of directors of both companies. The deal is expected to be closed by the end of the second quarter of 2016. OSI Systems CEO Deepak Chopra said in a statement that American Science & Engineering’s acquisition is the” most significant” security acquisition in the company’s history. Mr. Chopra said that American Science & Engineering’s backscatter X-ray technology, its cutting-edge products, vast service network, and premier customer base will complement and enhance the current operations of OSI Systems. From our database, 10 funds were bullish on American Science & Engineering, Inc. (NASDAQ:ASEI) at the end of the first quarter. Mark Travis’ Intrepid Capital Management owns 437,777 shares of the company. On the other hand, Brett Barakett’s Tremblant Capital is one of 7 hedge funds from our system having stakes in OSI Systems, Inc. (NASDAQ:OSIS).
Move on to the next page to see why Callaway Golf and Middleburg Financial Corp are on the move today.