U.S. stocks are down considerably on Tuesday afternoon, driven by fears of a global economic slowdown, which have been renewed by feeble economic data out of China and Europe. However, as usual, a few stocks are moving in the opposite direction. Among the day’s big gainers, investors can look to Fabrinet (NYSE:FN), TriNet Group Inc (NYSE:TNET), FMC Corp (NYSE:FMC), Chemours Co (NYSE:CC), and AXT Inc (NASDAQ:AXTI), all of which are posting sizable gains on Tuesday. Let’s take a look into the events behind these spikes, and see what the hedge funds in our database think about each of these companies.
At Insider Monkey, we track more than 785 hedge funds, whose 13F filings we analyze as part of our small-cap strategy. Our research has shown that imitating a portfolio that includes the 15 most popular small-cap stocks among hedge funds can outperform the market by as much as 95 basis points per month on average (see more details here).
Fabrinet Surges on Strong Reuslts and Guidance
Let’s start with Fabrinet (NYSE:FN), a small-cap tech company that has witnessed its stock gain more than 11% since the bell rang this morning. The surge followed the announcement of the firm’s third quarter of fiscal year 2016 financial results after the market closed on Monday. Fabrinet reported earnings of $0.56 per share for the fiscal quarter, $0.03 above the Street’s consensus, on revenue of $250.9 million, which also beat expectations, by $8.1 million. Guidance for the fiscal fourth quarter was also strong, with the company predicting revenue of $260 million-to-$264 million, and EPS of $0.59-to-$0.61, eclipsing the consensus estimate of $250 million in revenue and $0.55 in EPS.
As of the end of 2015, Fabrinet (NYSE:FN) had 15 supporters among the hedge funds that we track, with their combined stakes accounting for almost 16% of the company’s shares. More recently, Donald Chiboucis’ Columbus Circle Investors disclosed a new position in the company comprising 299,957 shares as of March 31.
TriNet Spikes After Top and Bottom-Line Beats
Next up is TriNet Group Inc (NYSE:TNET), another small-cap that is up by almost 10% on Tuesday afternoon, driven by strong quarterly results of its own. First quarter EPS came in at $0.27, $0.02 ahead of estimates, while revenue rose by 14.6% year-over-year to $163.2 million, beating the Street’s consensus estimate by $13.37 million.
TriNet Group Inc (NYSE:TNET) was more popular among hedge funds than Fabrinet. As of December 31, 19 funds were long the stock and held 15.5% of the company’s float. Among them, we can count Eric Bannasch’s Cadian Capital, which declared holding 6.2 million shares of the company valued at more than $120 million as of the end of 2015.
Three more of the day’s big gainers are discussed on page two.