Hedge Funds Are Buying Micron Technology, Inc. (NASDAQ:MU)

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Is Micron Technology, Inc. (NASDAQ:MU) going to take off soon? Hedge funds are becoming more confident. The number of long hedge fund positions went up by 3 lately. Did Micron make our list of the 20 Cheapest Stocks on the market?

Micron Technology, Inc. (NASDAQ:MU)

According to most stock holders, hedge funds are assumed to be slow, old investment vehicles of years past. While there are greater than 8000 funds with their doors open at the moment, we hone in on the masters of this group, close to 450 funds. It is estimated that this group controls the majority of the smart money’s total asset base, and by keeping an eye on their top picks, we have brought to light a few investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outperformed the S&P 500 index by 25 percentage points in 6.5 month (see the details here).

Just as integral, bullish insider trading activity is another way to break down the investments you’re interested in. As the old adage goes: there are plenty of incentives for a bullish insider to drop shares of his or her company, but just one, very obvious reason why they would buy. Several academic studies have demonstrated the market-beating potential of this tactic if shareholders know where to look (learn more here).

Now, it’s important to take a peek at the recent action regarding Micron Technology, Inc. (NASDAQ:MU).

What have hedge funds been doing with Micron Technology, Inc. (NASDAQ:MU)?

In preparation for this year, a total of 31 of the hedge funds we track were long in this stock, a change of 11% from one quarter earlier. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were upping their holdings meaningfully.

When looking at the hedgies we track, William B. Gray’s Orbis Investment Management had the most valuable position in Micron Technology, Inc. (NASDAQ:MU), worth close to $797 million, comprising 7.9% of its total 13F portfolio. On Orbis Investment Management’s heels is Richard Chilton of Chilton Investment Company, with a $58 million position; 0.7% of its 13F portfolio is allocated to the stock. Some other hedge funds that are bullish include Jim Simons’s Renaissance Technologies, Kerr Neilson’s Platinum Asset Management and Charles Clough’s Clough Capital Partners.

Consequently, some big names were leading the bulls’ herd. CR Intrinsic Investors, managed by SAC Subsidiary, created the largest position in Micron Technology, Inc. (NASDAQ:MU). CR Intrinsic Investors had 16 million invested in the company at the end of the quarter. George Soros’s Soros Fund Management also initiated a $9 million position during the quarter. The other funds with brand new MU positions are Daniel S. Och’s OZ Management, Michael Johnston’s Steelhead Partners, and Glenn Russell Dubin’s Highbridge Capital Management.

Insider trading activity in Micron Technology, Inc. (NASDAQ:MU)

Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has experienced transactions within the past half-year.

How have insiders been trading the stock?

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