Is UniPixel Inc (NASDAQ:UNXL) undervalued? Prominent investors are getting more optimistic. The number of bullish hedge fund bets advanced by 3 lately.
If you’d ask most stock holders, hedge funds are assumed to be worthless, outdated investment vehicles of the past. While there are greater than 8000 funds trading today, we look at the top tier of this club, around 450 funds. It is widely believed that this group has its hands on the lion’s share of the smart money’s total asset base, and by watching their highest performing investments, we have discovered a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve began to 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 (explore the details and some picks here).
Just as beneficial, optimistic insider trading sentiment is another way to break down the financial markets. Obviously, there are plenty of incentives for a corporate insider to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Various academic studies have demonstrated the impressive potential of this method if shareholders know where to look (learn more here).
Keeping this in mind, let’s take a gander at the recent action encompassing UniPixel Inc (NASDAQ:UNXL).
Hedge fund activity in UniPixel Inc (NASDAQ:UNXL)
Heading into 2013, a total of 5 of the hedge funds we track held long positions in this stock, a change of 150% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings meaningfully.
Of the funds we track, Whitebox Advisors, managed by Andy Redleaf, holds the largest position in UniPixel Inc (NASDAQ:UNXL). Whitebox Advisors has a $3.7 million position in the stock, comprising 0.2% of its 13F portfolio. Coming in second is Millennium Management, managed by Israel Englander, which held a $0.8 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Phil Frohlich’s Prescott Group Capital Management, Jim Simons’s Renaissance Technologies and Mark A. Nordlicht’s Platinum Management.
With a general bullishness amongst the heavyweights, specific money managers have jumped into UniPixel Inc (NASDAQ:UNXL) headfirst. Millennium Management, managed by Israel Englander, established the biggest position in UniPixel Inc (NASDAQ:UNXL). Millennium Management had 0.8 million invested in the company at the end of the quarter. Phil Frohlich’s Prescott Group Capital Management also initiated a $0.7 million position during the quarter. The other funds with brand new UNXL positions are Jim Simons’s Renaissance Technologies and Mark A. Nordlicht’s Platinum Management.
What have insiders been doing with UniPixel Inc (NASDAQ:UNXL)?
Bullish insider trading is at its handiest when the company in question has seen transactions within the past half-year. Over the latest half-year time frame, UniPixel Inc (NASDAQ:UNXL) has experienced zero unique insiders buying, and 7 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to UniPixel Inc (NASDAQ:UNXL). These stocks are Vicor Corp (NASDAQ:VICR), Orbotech Ltd. (NASDAQ:ORBK), Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO), CTS Corporation (NYSE:CTS), and KEMET Corporation (NYSE:KEM). This group of stocks are the members of the diversified electronics industry and their market caps are closest to UNXL’s market cap.