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.

Hedge Funds Have Never Been This Bullish On UFP Technologies, Inc. (UFPT)

Is UFP Technologies, Inc. (NASDAQ:UFPT) a good bet right now? We like to analyze hedge fund sentiment before doing days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments and it is a fact that hedge funds’ picks don’t beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.

UFP Technologies, Inc. (NASDAQ:UFPT) shareholders have witnessed an increase in support from the world’s most elite money managers in recent months. Our calculations also showed that UFPT isn’t among the 30 most popular stocks among hedge funds.

Today there are tons of gauges market participants use to appraise their holdings. A pair of the best gauges are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the top picks of the top money managers can outpace the S&P 500 by a very impressive amount (see the details here).

Joe Huber - Huber Capital Management

We’re going to check out the latest hedge fund action regarding UFP Technologies, Inc. (NASDAQ:UFPT).

What have hedge funds been doing with UFP Technologies, Inc. (NASDAQ:UFPT)?

At the end of the first quarter, a total of 9 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 13% from the fourth quarter of 2018. On the other hand, there were a total of 7 hedge funds with a bullish position in UFPT a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

No of Hedge Funds with UFPT Positions

Among these funds, Cove Street Capital held the most valuable stake in UFP Technologies, Inc. (NASDAQ:UFPT), which was worth $26.9 million at the end of the first quarter. On the second spot was Renaissance Technologies which amassed $19.9 million worth of shares. Moreover, Ancora Advisors, Royce & Associates, and Huber Capital Management were also bullish on UFP Technologies, Inc. (NASDAQ:UFPT), allocating a large percentage of their portfolios to this stock.

With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Millennium Management, managed by Israel Englander, assembled the biggest position in UFP Technologies, Inc. (NASDAQ:UFPT). Millennium Management had $0.2 million invested in the company at the end of the quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as UFP Technologies, Inc. (NASDAQ:UFPT) but similarly valued. These stocks are Calumet Specialty Products Partners, L.P (NASDAQ:CLMT), Telenav Inc (NASDAQ:TNAV), Alpha and Omega Semiconductor Ltd (NASDAQ:AOSL), and Digital Turbine Inc (NASDAQ:APPS). All of these stocks’ market caps resemble UFPT’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CLMT 4 10140 -1
TNAV 10 75691 1
AOSL 11 42571 0
APPS 15 17435 5
Average 10 36459 1.25

View table here if you experience formatting issues.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $36 million. That figure was $69 million in UFPT’s case. Digital Turbine Inc (NASDAQ:APPS) is the most popular stock in this table. On the other hand Calumet Specialty Products Partners, L.P (NASDAQ:CLMT) is the least popular one with only 4 bullish hedge fund positions. UFP Technologies, Inc. (NASDAQ:UFPT) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on UFPT as the stock returned 6.9% during the same time frame and outperformed the market by an even larger margin.

Disclosure: None. This article was originally published at Insider Monkey.

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.
Loading...