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.

Check Out Why These 4 Stocks Spiked This Morning

After a very bad start to the year, the markets have started to recuperate today, with all major U.S stock indexes up slightly. Among the stocks driving this rebound are Super Micro Computer, Inc. (NASDAQ:SMCI), Burlington Stores Inc (NYSE:BURL), Horizon Pharma PLC (NASDAQ:HZNP), and Aaron’s, Inc. (NYSE:AAN), all of which are up substantially in the early afternoon hours. Let’s take a look into the events which led to these spikes, as well as at how the hedge funds in our database feel about the companies involved.

Most investors don’t understand hedge funds and indicators that are based on hedge funds’ activities. They ignore hedge funds because of their recent poor performance in the bull market. Our research indicates that hedge funds underperformed because they aren’t 100% long. Hedge fund fees are also very large compared to the returns generated and they reduce the net returns experienced by investors. We uncovered that hedge funds’ long positions actually outperformed the market (read the details). That’s why we believe investors should pay attention to what hedge funds are buying — rather than what their net returns are.

Back to Tuesday’s gainers, let’s take a look first at Super Micro Computer, Inc. (NASDAQ:SMCI), which is trading up by over 22% today. Before the market opened, the small-cap server technology provider issued preliminary fiscal year 2016 second-quarter financial results above its prior guidance. Management now envisions revenue of between $637 million and $639 million and EPS of $0.69-to-$0.72 for the quarter, up from the previous guidance of $580 million-to-$630 million and $0.54-to-$0.64, respectively. The earnings call is scheduled for February 28.

Follow Super Micro Computer Inc. (NASDAQ:SMCI)
Trade (NASDAQ:SMCI) Now!

Among the funds in our database, 14 disclosed long stakes in Super Micro Computer, Inc. (NASDAQ:SMCI) as of the end of the third quarter of 2015, the same as of the end of the previous quarter. The most bullish seems to be Chuck Royce’s mutual fund, Royce & Associates, which declared holding 881,413 shares of the company, after tripling its exposure during the third quarter.

Burlington Stores Inc (NYSE:BURL), for its part, is up by about 11.3% today after management updated its fourth-quarter guidance on Monday evening. The retailer now anticipates net sales to surge by roughly 3.7%, at the low end of its previous guidance, which called for an increase of between 3.7% and 4.7%. On the other hand, EPS guidance was trimmed on the high end, to $1.44-to-$1.46 from previous guidance of from $1.44-to-$1.48.

Follow Burlington Stores Inc. (NYSE:BURL)
Trade (NYSE:BURL) Now!

Interestingly, Burlington Stores Inc (NYSE:BURL) is quite popular among institutional investors. Among the funds that we track, 39 were long the company as of the end of the third quarter, up from 38 following the second quarter. Moreover, these funds owned 20% of the company’s total shares on September 30, with Ken Griffin’s Citadel Investment Group holding the largest stake, comprising 2.42 million shares, worth about $123.5 million.

On the next page, we will look into the reason behind the surges in the shares of Horizon Pharma PLC (NASDAQ:HZNP) and Aaron’s, Inc. (NYSE:AAN).

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.