Should You Buy II-VI, Inc. (IIVI)? – Analogic Corporation (ALOG), Cubic Corporation (CUB)

Page 1 of 2

II-VI, Inc. (NASDAQ:IIVI) investors should be aware of an increase in activity from the world’s largest hedge funds of late.


In today’s marketplace, there are dozens of methods market participants can use to track the equity markets. A couple of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top fund managers can beat the market by a very impressive margin (see just how much).

Just as beneficial, optimistic insider trading sentiment is another way to break down the financial markets. Obviously, there are lots of reasons for an executive to drop shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the useful potential of this strategy if you know what to do (learn more here).

With all of this in mind, we’re going to take a glance at the latest action surrounding II-VI, Inc. (NASDAQ:IIVI).

How have hedgies been trading II-VI, Inc. (NASDAQ:IIVI)?

At the end of the fourth quarter, a total of 10 of the hedge funds we track were long in this stock, a change of 150% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their stakes significantly.

According to our comprehensive database, Invicta Capital Management, managed by Gregory A. Weaver, holds the biggest position in II-VI, Inc. (NASDAQ:IIVI). Invicta Capital Management has a $11 million position in the stock, comprising 4.8% of its 13F portfolio. On Invicta Capital Management’s heels is Ken Griffin of Citadel Investment Group, with a $2 million position; the fund has 0% of its 13F portfolio invested in the stock. Some other peers that hold long positions include Israel Englander’s Millennium Management, Jim Simons’s Renaissance Technologies and Joel Greenblatt’s Gotham Asset Management.

As industrywide interest jumped, some big names have jumped into II-VI, Inc. (NASDAQ:IIVI) headfirst. Millennium Management, managed by Israel Englander, established the largest position in II-VI, Inc. (NASDAQ:IIVI). Millennium Management had 1 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $1 million investment in the stock during the quarter. The other funds with brand new IIVI positions are Joel Greenblatt’s Gotham Asset Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Ken Gray and Steve Walsh’s Bryn Mawr Capital.

What have insiders been doing with II-VI, Inc. (NASDAQ:IIVI)?

Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the latest half-year time period, II-VI, Inc. (NASDAQ:IIVI) has experienced zero unique insiders purchasing, and 3 insider sales (see the details of insider trades here).

Let’s also examine hedge fund and insider activity in other stocks similar to II-VI, Inc. (NASDAQ:IIVI). These stocks are MTS Systems Corporation (NASDAQ:MTSC), Analogic Corporation (NASDAQ:ALOG), Cubic Corporation (NYSE:CUB), ESCO Technologies Inc. (NYSE:ESE), and Ion Geophysical Corp (NYSE:IO). This group of stocks are the members of the scientific & technical instruments industry and their market caps are closest to IIVI’s market cap.

Page 1 of 2