Ultra Clean Holdings Inc (NASDAQ:UCTT) shareholders have witnessed an increase in activity from the world’s largest hedge funds lately.
In the 21st century investor’s toolkit, there are many indicators investors can use to monitor Mr. Market. A duo of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can beat their index-focused peers by a superb margin (see just how much).
Equally as key, optimistic insider trading activity is a second way to parse down the marketplace. There are a variety of reasons for a bullish insider to get rid of shares of his or her company, but only one, very clear reason why they would buy. Many empirical studies have demonstrated the impressive potential of this method if shareholders understand where to look (learn more here).
Consequently, let’s take a glance at the latest action regarding Ultra Clean Holdings Inc (NASDAQ:UCTT).
What does the smart money think about Ultra Clean Holdings Inc (NASDAQ:UCTT)?
At the end of the fourth quarter, a total of 7 of the hedge funds we track held long positions in this stock, a change of 17% from the previous quarter. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their holdings substantially.
When looking at the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the largest position in Ultra Clean Holdings Inc (NASDAQ:UCTT). Royce & Associates has a $12.3 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Royce & Associates’s heels is GRT Capital Partners, managed by Gregory Fraser, Rudolph Kluiber, and Timothy Kroch, which held a $2.2 million position; 0.5% of its 13F portfolio is allocated to the stock. Some other hedge funds with similar optimism include Peter Algert and Kevin Coldiron’s Algert Coldiron Investors, John Overdeck and David Siegel’s Two Sigma Advisors and Jim Simons’s Renaissance Technologies.
Now, key hedge funds have been driving this bullishness. Millennium Management, managed by Israel Englander, initiated the most outsized position in Ultra Clean Holdings Inc (NASDAQ:UCTT). Millennium Management had 0.1 million invested in the company at the end of the quarter.
How have insiders been trading Ultra Clean Holdings Inc (NASDAQ:UCTT)?
Bullish insider trading is at its handiest when the primary stock in question has experienced transactions within the past half-year. Over the latest half-year time period, Ultra Clean Holdings Inc (NASDAQ:UCTT) has experienced 2 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Ultra Clean Holdings Inc (NASDAQ:UCTT). These stocks are Rubicon Technology, Inc. (NASDAQ:RBCN), Canadian Solar Inc. (NASDAQ:CSIQ), Sigma Designs Inc (NASDAQ:SIGM), MaxLinear, Inc. (NYSE:MXL), and Actions Semiconductor Co., Ltd. (ADR) (NASDAQ:ACTS). All of these stocks are in the semiconductor – specialized industry and their market caps resemble UCTT’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Rubicon Technology, Inc. (NASDAQ:RBCN) | 8 | 0 | 2 |
| Canadian Solar Inc. (NASDAQ:CSIQ) | 6 | 0 | 0 |
| Sigma Designs Inc (NASDAQ:SIGM) | 7 | 0 | 0 |
| MaxLinear, Inc. (NYSE:MXL) | 5 | 0 | 0 |
| Actions Semiconductor Co., Ltd. (ADR) (NASDAQ:ACTS) | 1 | 0 | 0 |
With the results exhibited by the aforementioned strategies, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Ultra Clean Holdings Inc (NASDAQ:UCTT) is no exception.
