In a new filing with the U.S. Securities and Exchange Commission, Central Square Management, led by Kelly Cardwell, disclosed increasing its stake in UCP Inc (NYSE:UCP). The stake was raised to 409,139 Class A shares from 254,118 shares that the fund held as of the end of the first quarter. The stake represents 5.18% of the company’s outstanding common stock and is passive by nature. UCP Inc (NYSE:UCP) is a homebuilder and land developer, with a market cap of $57.11 million.
We don’t just track the latest moves of hedge funds. We are, in fact, more interested in their 13F filings, which we use to determine the top 15 small-cap stocks held by the funds we track. We gather and share this information based on 16 years of research which showed that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in backtests, and easily beating the most popular large-cap picks of funds, which nonetheless get the majority of their collective capital. Why pay fees to invest in both the best and worst ideas of a particular hedge fund when you can simply mimic only the very best ideas of the best fund managers on your own? Since the beginning of forward testing in August 2012, the Insider Monkey small-cap strategy has outperformed the market every year, returning 142%, nearly 2.5 times greater returns than the S&P 500 during the same period (see more details).
Illinois-based Central Square Management was founded by Kelly Cardwell in 2007. The long/short fund employs a fundamental-based bottom-up process to pick stocks. Before launching Central Square Management, Cardwell worked at Fidelity Investments. In its latest 13F filing, Central Square disclosed a public equity portfolio valued at $96.09 million. In this article, we’ll also take a look at Central Square’s top holdings in terms of value, which are PICO Holdings Inc (NASDAQ:PICO), Avid Technology Inc. (NASDAQ:AVID), and Discovery Communications Inc. (NASDAQ:DISCA).
California-based UCP Inc (NYSE:UCP) is engaged in the design and development of sustainable single-family homes. The company reported very strong financial results for the first quarter of 2015, with total consolidated revenue increasing by 69.9% year-over-year to $43.5 million. It posted a 202.4% increase in new home orders to 254 units. Net loss for the quarter dropped to $1.8 million, versus a loss of $2.5 million in the same quarter last year. Last year, UCP Inc (NYSE:UCP) acquired Citizens Homes Inc., a privately-held homebuilder that operates in select markets in the Southeastern United States. Shares of UCP Inc (NYSE:UCP) have not been performing well despite the growth, declining 46.71% during the past year. Chuck Royce’s Royce & Associates is also a big investor of the company, holding 457,500 shares as of March 31.
Lets talk about Central Square’s top holdings, starting with PICO Holdings Inc (NASDAQ:PICO). During the first quarter, Central Square upped its stake in the $364.62-million market cap company by 22% to 1.22 million shares, worth $19.73 million. PICO Holdings Inc (NASDAQ:PICO)’s core businesses are water resource and water storage operations, real estate operations, agribusiness operations, and corporate. For the first quarter of 2015, PICO Holdings Inc (NASDAQ:PICO) reported a net loss of $16.8 million, or $0.73 per share, versus a loss of $13.2 million, $0.58 per share, in the same quarter of 2014. PICO Holdings Inc (NASDAQ:PICO)’s stock has lost 31.21% during the past calendar year. Ken Griffin’s Citadel Investment Group also boosted its stake in PICO Holdings Inc (NASDAQ:PICO) during the first quarter, by 85% to 60,232 shares.