Why Are These Stocks Surging Today?

Hedge funds are bullish on UTi Worldwide Inc. (NASDAQ:UTIW). The total value of their holdings in the stock increased to $363.06 million (representing 34.30% of the float) at the end of June up from $355.66 million at the end of March, while the total number of elite funds long the stock stayed more or less constant at 14, down 1 from the previous quarter. Claus Moller‘s P2 Capital Partners owns 11.27 million shares, good for 17.87% of the portfolio.

Hedge funds are optimistic on Horsehead Holding Corp. (NASDAQ:ZINC). 15 funds were long $172 million (representing 25.90% of the float) of the stock in the second quarter, nearly unchanged from 15 funds and $179.54 million in the first quarter. Famed value investor Mohnish Pabrai, who many investors think is the Indian Warren Buffett, owns 6.33 million shares, good for 15.63% of his portfolio. Hedge funds think the zinc producer is very well run, has a wide moat given its cost advantages and long term contracts, and is highly levered towards inflation. Shares haven’t done very well this year as zinc prices are off substantially due to a weakening Chinese economy, but Horsehead Holding has a book value of $8.48 per share and analysts think the company will be profitable next year.

Hedge funds from our database increased their positions in Teck Resources in the second quarter. Of the around 730 elite funds we track, 15 funds owned $97.69 million worth of the company’s shares (representing 1.70% of the float) at the end of June, versus 12 funds and $35.33 million on March 31. Jonathan Barrett And Paul Segal’s Liminus Management established a new position of 4.75 million shares, while Ray Dalio‘s Bridgewater Associates trimmed its stake by 6% to 262,400 shares.

Of the three names, hedge funds are most optimistic on Horsehead Holding Corp going forward.

Disclosure: None