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Hedge Funds Are Crazy About Universal Electronics Inc (UEIC)

As industrywide interest jumped, specific money managers have jumped into Universal Electronics Inc (NASDAQ:UEIC) headfirst. Citadel Investment Group initiated the biggest position in Universal Electronics Inc (NASDAQ:UEIC). Israel Englander’s Millennium Management also made a $1 million investment in the stock during the quarter. The other funds with new positions in the stock are Chao Ku’s Nine Chapters Capital Management, Ken Gray and Steve Walsh’s Bryn Mawr Capital, and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Universal Electronics Inc (NASDAQ:UEIC) but similarly valued. These stocks are IAMGOLD Corporation (USA) (NYSE:IAG), The Rubicon Project Inc (NYSE:RUBI), Constellium NV (NYSE:CSTM), and Wstrn Ast Clymr Infltn Lkd Opts & Inc Fd (NYSE:WIW). This group of stocks’ market values are similar to UEIC’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IAG 9 32782 -7
RUBI 19 71424 2
CSTM 22 188758 -3
WIW 4 4053 1

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $74 million. That figure was $13 million in UEIC’s case. Constellium NV (NYSE:CSTM) is the most popular stock in this table. On the other hand Wstrn Ast Clymr Infltn Lkd Opts & Inc Fd (NYSE:WIW) is the least popular one with only 4 bullish hedge fund positions. Universal Electronics Inc (NASDAQ:UEIC) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CSTM might be a better candidate to consider a long position.

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