Hedge Funds Are Betting on These Five Cheap Tech Stocks

#2. Oclaro Inc. (NASDAQ:OCLR)

– Investors with long positions as of March 31: 33

– Aggregate value of investors’ holdings as of March 31: $149.32 Million

The smart money sentiment towards Oclaro Inc. (NASDAQ:OCLR) rose spectacularly during the January-to-March period, as the number of assets managers from our system with equity investments in Oclaro spiked to 33 from 19 quarter-over-quarter. The overall value of those equity investments nearly doubled quarter-over-quarter, increasing to $149.32 million from a mere $75.74 million recorded at the end of December. The 33 hedge fund vehicles hoarded up almost 25% of the company’s outstanding shares. The fiber-optic component supplier’s shares have advanced 26% since the beginning of the year. The company’s revenues for the nine months that ended March 26 were $282.73 million, up $23.6 million relative to the same period of the prior year. The increase was mainly driven by higher sales of Oclaro’s 100 Gb/s transmission modules, partially offset by lower sales of the company’s 40 Gb/s and lower transmission modules that are gradually replaced by newer products. Leon Shaulov’s Maplelane Capital added a 2.70 million-share position in Oclaro Inc. (NASDAQ:OCLR) to its pool of holdings during the first quarter of 2016.

#1. Brocade Communications Systems Inc. (NASDAQ:BRCD)

– Investors with long positions as of March 31: 36

– Aggregate value of investors’ holdings as of March 31: $503.12 Million

There were 36 hedge funds from our database with long positions in Brocade Communications Systems Inc. (NASDAQ:BRCD) at the end of the March quarter, as compared to 29 recorded at the end of the December quarter. Nonetheless, the aggregate value of those hedge fund positions dropped to $503.12 million from $514.56 million quarter-over-quarter. Roughly 12% of the company’s outstanding shares were owned by the 36 hedge funds tracked by Insider Monkey invested in Brocade. In early April, the supplier of networking hardware, software and services announced it had agreed to acquire pioneer in wireless infrastructure Ruckus Wireless Inc. (NYSE:RKUS) in a cash-and-stock deal valued at $1.5 billion. The transaction, set to enhance Brocade’s competitive position in the enterprise networking and service provider markets, is anticipated to close in the company’s third quarter of fiscal 2016 that ends July 31. At closing, Ruckus shareholders will receive $6.45 in cash and 0.75 shares of Brocade for each Ruckus share. Royce & Associates, founded by Chuck Royce, owns 6.32 million shares of Brocade Communications Systems Inc. (NASDAQ:BRCD) as of the end of March.

Disclosure: None