Measurement Specialties, Inc. (NASDAQ:MEAS) was in 5 hedge funds’ portfolio at the end of December. MEAS shareholders have witnessed an increase in hedge fund sentiment recently. There were 4 hedge funds in our database with MEAS positions at the end of the previous quarter.
To most traders, hedge funds are assumed to be underperforming, outdated financial tools of the past. While there are greater than 8000 funds trading today, we choose to focus on the upper echelon of this group, about 450 funds. It is estimated that this group controls most of all hedge funds’ total asset base, and by keeping an eye on their best picks, we have spotted a number of investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually 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 outpaced the S&P 500 index by 24 percentage points in 7 months (see the details here).
Equally as integral, positive insider trading sentiment is a second way to break down the stock market universe. Obviously, there are a variety of reasons for a bullish insider to downsize shares of his or her company, but only one, very obvious reason why they would buy. Several academic studies have demonstrated the market-beating potential of this method if piggybackers understand what to do (learn more here).
With all of this in mind, it’s important to take a peek at the latest action regarding Measurement Specialties, Inc. (NASDAQ:MEAS).
Hedge fund activity in Measurement Specialties, Inc. (NASDAQ:MEAS)
In preparation for this year, a total of 5 of the hedge funds we track were long in this stock, a change of 25% from the third quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were upping their stakes significantly.
According to our comprehensive database, “Richard S. Meisenberg’s ACK Asset Management had the largest position in Measurement Specialties, Inc. (NASDAQ:MEAS), worth close to $6.3 million, comprising 3.1% of its total 13F portfolio. On ACK Asset Management’s heels is GRT Capital Partners, managed by Gregory Fraser, Rudolph Kluiber, and Timothy Kroch, which held a $0.6 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedgies that hold long positions include D. E. Shaw’s D E Shaw, Cliff Asness’s AQR Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors.
With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Two Sigma Advisors, managed by John Overdeck and David Siegel, initiated the biggest position in Measurement Specialties, Inc. (NASDAQ:MEAS). Two Sigma Advisors had 0.3 million invested in the company at the end of the quarter.
How have insiders been trading Measurement Specialties, Inc. (NASDAQ:MEAS)?
Bullish insider trading is at its handiest when the company in focus has experienced transactions within the past six months. Over the latest six-month time period, Measurement Specialties, Inc. (NASDAQ:MEAS) has experienced 2 unique insiders purchasing, and 5 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Measurement Specialties, Inc. (NASDAQ:MEAS). These stocks are Fluidigm Corporation (NASDAQ:FLDM), Badger Meter, Inc. (NYSE:BMI), Rofin-Sinar Technologies (NASDAQ:RSTI), FARO Technologies, Inc. (NASDAQ:FARO), and Landauer, Inc. (NYSE:LDR). This group of stocks belong to the scientific & technical instruments industry and their market caps are similar to MEAS’s market cap.