Hedge Funds Are Crazy About Supertex, Inc. (SUPX)

Is Supertex, Inc. (NASDAQ:SUPX) a marvelous investment today? The smart money is betting on the stock. The number of bullish hedge fund bets rose by 4 in recent months.

At the moment, there are dozens of gauges market participants can use to monitor their holdings. A duo of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite fund managers can trounce the S&P 500 by a significant amount (see just how much).

Equally as beneficial, bullish insider trading activity is another way to break down the stock market universe. Obviously, there are a variety of reasons for an executive to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Many academic studies have demonstrated the impressive potential of this method if “monkeys” understand what to do (learn more here).

With these “truths” under our belt, we’re going to take a glance at the key action surrounding Supertex, Inc. (NASDAQ:SUPX).

Hedge fund activity in Supertex, Inc. (NASDAQ:SUPX)

Heading into Q2, a total of 8 of the hedge funds we track were bullish in this stock, a change of 100% from the first quarter. With hedgies’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their holdings considerably.

When looking at the hedgies we track, Chuck Royce’s Royce & Associates had the most valuable position in Supertex, Inc. (NASDAQ:SUPX), worth close to $7.4 million, comprising less than 0.1%% of its total 13F portfolio. On Royce & Associates’s heels is George Soros of Soros Fund Management, with a $5.8 million position; 0.1% of its 13F portfolio is allocated to the stock. Other hedge funds with similar optimism include Jim Simons’s Renaissance Technologies, Israel Englander’s Millennium Management and D. E. Shaw’s D E Shaw.

With a general bullishness amongst the heavyweights, key money managers have jumped into Supertex, Inc. (NASDAQ:SUPX) headfirst. Soros Fund Management, managed by George Soros, assembled the most outsized position in Supertex, Inc. (NASDAQ:SUPX). Soros Fund Management had 5.8 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $0.5 million investment in the stock during the quarter. The other funds with brand new SUPX positions are Joel Greenblatt’s Gotham Asset Management, and Ken Griffin’s Citadel Investment Group.

How are insiders trading Supertex, Inc. (NASDAQ:SUPX)?

Bullish insider trading is particularly usable when the company in question has experienced transactions within the past six months. Over the last half-year time period, Supertex, Inc. (NASDAQ:SUPX) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Supertex, Inc. (NASDAQ:SUPX). These stocks are ParkerVision, Inc. (NASDAQ:PRKR), PLX Technology, Inc. (NASDAQ:PLXT), Oplink Communications, Inc (NASDAQ:OPLK), Peregrine Semiconductor Corp (NASDAQ:PSMI), and Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE). All of these stocks are in the semiconductor – integrated circuits industry and their market caps are closest to SUPX’s market cap.