Hedge Funds Are Snapping Up GSI Technology, Inc. (GSIT)

At Insider Monkey, we pore over the filings of nearly 873 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of June 30th. In this article, we will use that wealth of knowledge to determine whether or not GSI Technology, Inc. (NASDAQ:GSIT) makes for a good investment right now.

GSI Technology, Inc. (NASDAQ:GSIT) investors should be aware of an increase in hedge fund interest of late. GSI Technology, Inc. (NASDAQ:GSIT) was in 10 hedge funds’ portfolios at the end of June. The all time high for this statistic is 8. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that GSIT isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

In today’s marketplace there are a lot of indicators market participants have at their disposal to evaluate stocks. A couple of the most under-the-radar indicators are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the top picks of the elite fund managers can outperform the market by a superb amount (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website .

Paul Marshall of Marshall Wace

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind let’s review the new hedge fund action surrounding GSI Technology, Inc. (NASDAQ:GSIT).

Do Hedge Funds Think GSIT Is A Good Stock To Buy Now?

At second quarter’s end, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 100% from the previous quarter. The graph below displays the number of hedge funds with bullish position in GSIT over the last 24 quarters. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were adding to their stakes meaningfully (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Jim Roumell’s Roumell Asset Management has the most valuable position in GSI Technology, Inc. (NASDAQ:GSIT), worth close to $10.6 million, accounting for 12.3% of its total 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, with a $6.3 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other peers that are bullish consist of Israel Englander’s Millennium Management, Eric Singer’s VIEX Capital Advisors and Paul Marshall and Ian Wace’s Marshall Wace LLP. In terms of the portfolio weights assigned to each position Roumell Asset Management allocated the biggest weight to GSI Technology, Inc. (NASDAQ:GSIT), around 12.33% of its 13F portfolio. VIEX Capital Advisors is also relatively very bullish on the stock, dishing out 0.26 percent of its 13F equity portfolio to GSIT.

As one would reasonably expect, key hedge funds have been driving this bullishness. Millennium Management, managed by Israel Englander, initiated the most valuable position in GSI Technology, Inc. (NASDAQ:GSIT). Millennium Management had $0.9 million invested in the company at the end of the quarter. Eric Singer’s VIEX Capital Advisors also made a $0.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Paul Marshall and Ian Wace’s Marshall Wace LLP, Michael Gelband’s ExodusPoint Capital, and Greg Eisner’s Engineers Gate Manager.

Let’s now take a look at hedge fund activity in other stocks similar to GSI Technology, Inc. (NASDAQ:GSIT). These stocks are Spark Networks SE (NYSE:LOV), Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA), Odonate Therapeutics, Inc. (NASDAQ:ODT), Ultralife Corp. (NASDAQ:ULBI), Armstrong Flooring, Inc. (NYSE:AFI), Bogota Financial Corp. (NASDAQ:BSBK), and Manning and Napier Inc (NYSE:MN). All of these stocks’ market caps resemble GSIT’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 6.6 hedge funds with bullish positions and the average amount invested in these stocks was $23 million. That figure was $19 million in GSIT’s case. Odonate Therapeutics, Inc. (NASDAQ:ODT) is the most popular stock in this table. On the other hand Bogota Financial Corp. (NASDAQ:BSBK) is the least popular one with only 2 bullish hedge fund positions. GSI Technology, Inc. (NASDAQ:GSIT) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for GSIT is 76.4. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 25.7% in 2021 through September 27th and beat the market again by 6.2 percentage points. Unfortunately GSIT wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on GSIT were disappointed as the stock returned -2% since the end of June (through 9/27) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.

Suggested Articles:

• 10 Best Mutual Funds for 2021
• 12 Best Ecommerce Stocks to Invest In
• 20 Short Dating Profile Examples for Males

Disclosure: None. This article was originally published at Insider Monkey.

Follow Insider Monkey on Twitter