Five Cheap Tech Stocks Hedge Funds Like

#3 Atmel Corporation (NASDAQ:ATML)

 – Investors with Long Positions (as of December 31): 33

 – Aggregate Value of Investors’ Holdings (as of December 31): $898.68 Million

There was a surge in hedge fund interest pertaining to Atmel Corporation (NASDAQ:ATML) during the fourth quarter, as evidenced by the towering 238% rise in the aggregate value of their holdings in the stock, despite the total number of investors holding the stock in their portfolios dropping by two. The stock price nearly doubled during this period, seemingly prompting some money managers to take profit off the table, while others doubled down. However, in a rare twist, Atmel agreed to be acquired by chipmaker Microchip Technology Inc. (NASDAQ:MCHP) in January, in a deal that was actually worth less than its share price at the time, although it should be noted that shares were already inflated due to the bidding war for the company being waged by Microchip and Dialog Semiconductor. Nick Neil‘s Arrowgrass Capital Partners hiked its Atmel Corporation (NASDAQ:ATML) stake by 321% to 20.12 million shares in the fourth trimester.

#2 ON Semiconductor Corp (NASDAQ:ON)

 – Investors with Long Positions (as of December 31): 34

 – Aggregate Value of Investors’ Holdings (as of December 31): $406.54 Million

The number of hedge funds long ON Semiconductor Corp (NASDAQ:ON) increased by five during the fourth quarter, though the aggregate value of their holdings dropped by 27%. Shares of the Phoenix, Arizona-based company have slumped by more than 26% in the last 12 months, but analysts believe that inventory has now bottomed out, after weak demand stifled sales and inventory corrections in its distributions channel had to be made by the company’s management. Moreover, despite those headwinds, sales from ON’s automotive segment have remained strong, and according to analysts, they will be a strong driver for the company in 2016 as well. Pzena Investment Management, which is led by Richard S. Pzena holds 11.15 million shares of ON Semiconductor Corp (NASDAQ:ON) valued at $109.29 million.

#1 Sunedison Inc (NYSE:SUNE)

 – Investors with Long Positions (as of December 31): 50

 – Aggregate Value of Investors’ Holdings (as of December 31): $512.32 Million

Considering that shares of the $654 million provider of photovoltaic energy solutions have cratered by more than 91% during the past 12 months, it is not surprising that the number of hedgies backing the company fell by 23 during the fourth quarter, along with a 52% slide in the aggregate value of their holdings. High debt management risk and weak operating cash flow are some of the reasons that have contributed to the precipitous slide. However, shares of Sunedison Inc (NYSE:SUNE) recently received a much needed breather when Vivint Solar (NYSE:VSLR) terminated an agreement to be acquired by Sunedison, citing that the company failed to “meet its obligations under the merger agreement”. The news was a blessing for Sunedison’s shareholders, as the company didn’t have funds to acquire Vivint Solar in the first place. David Gallo‘s Valinor Management increased its stake in Sunedison Inc (NYSE:SUNE) by 43% to 22.24 million shares during the fourth trimester.

Disclosure: None