Through extensive research, we determined that imitating some of the picks of hedge funds and other institutional investors can help generate market-beating returns over the long run. The key is to focus on the small-cap picks of these investors, since they are usually less followed by the broader market and are less price-efficient. Our backtests that covered the period between 1999 and 2012, showed that following the 15 most popular small-caps among hedge funds can help a retail investor beat the market by an average of 95 basis points per month (see the details here).
Silicom Surges on Earnings Beat
Silicom Ltd. (NASDAQ:SILC) shares have rallied by 12% today after the tech company reported excellent second-quarter results. During the quarter, the company earned $0.63 per share on sales of $26 million, compared to revenue of $17.1 million and earnings of $0.40 per diluted share reported for the second quarter of 2015. Demand was strong in the target markets of cyber security, cloud and SDN, while management is optimistic given the company’s solid pipeline. During the first quarter, the number of funds with holdings in Silicom Ltd. (NASDAQ:SILC) rose by two to five.
Micron Rises on New Shareholder Rights Plan
Micron Technology, Inc. (NASDAQ:MU) is in the spotlight after the company adopted a ‘poison pill’ plan on Friday. For those interested, the exact details about the new ownership limitations can be found here. Although there is no overt buyer, some traders are evidently speculating that management wouldn’t have adopted the pill if there weren’t parties potentially interested. Tsinghua Unigroup was interested in Micron last year, but many investors didn’t think the deal would have gotten regulatory approval due to national security reasons. The number of investors from our database with holdings in Micron Technology, Inc. (NASDAQ:MU) fell by 13 quarter-over-quarter to 51 at the end of March.
On the next page, we find out why traders are buying or selling Santander Consumer USA Holdings, Tobira Therapeutics, and Whiting Petroleum Corp.