UTi Worldwide Inc. (UTIW): Hedge Funds and Insiders Are Bearish, What Should You Do?

UTi Worldwide Inc. (NASDAQ:UTIW) was in 11 hedge funds’ portfolio at the end of March. UTIW has experienced a decrease in activity from the world’s largest hedge funds lately. There were 13 hedge funds in our database with UTIW holdings at the end of the previous quarter.

To most stock holders, hedge funds are perceived as underperforming, old investment vehicles of the past. While there are greater than 8000 funds with their doors open at present, we look at the top tier of this club, close to 450 funds. It is estimated that this group has its hands on most of the hedge fund industry’s total capital, and by tracking their top investments, we have determined a few investment strategies that have historically beaten Mr. Market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

Equally as important, bullish insider trading activity is a second way to break down the world of equities. There are lots of stimuli for an executive to cut shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the impressive potential of this method if piggybackers understand what to do (learn more here).

Consequently, it’s important to take a peek at the key action surrounding UTi Worldwide Inc. (NASDAQ:UTIW).

What have hedge funds been doing with UTi Worldwide Inc. (NASDAQ:UTIW)?

At the end of the first quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of -15% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their holdings substantially.

According to our comprehensive database, P2 Capital Partners, managed by Claus Moller, holds the largest position in UTi Worldwide Inc. (NASDAQ:UTIW). P2 Capital Partners has a $148.2 million position in the stock, comprising 25.3% of its 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $70.2 million position; 0.2% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Joel Ramin’s 12 West Capital Management, Michael Lowenstein’s Kensico Capital and Jeffrey Smith’s Starboard Value LP.

Seeing as UTi Worldwide Inc. (NASDAQ:UTIW) has witnessed bearish sentiment from the entirety of the hedge funds we track, logic holds that there were a few money managers who sold off their full holdings heading into Q2. Interestingly, Clint Carlson’s Carlson Capital said goodbye to the biggest position of all the hedgies we key on, worth close to $20.8 million in stock., and Ken Griffin of Citadel Investment Group was right behind this move, as the fund said goodbye to about $3.1 million worth. These moves are important to note, as aggregate hedge fund interest fell by 2 funds heading into Q2.

What do corporate executives and insiders think about UTi Worldwide Inc. (NASDAQ:UTIW)?

Insider trading activity, especially when it’s bullish, is best served when the company in focus has experienced transactions within the past 180 days. Over the latest six-month time frame, UTi Worldwide Inc. (NASDAQ:UTIW) has experienced zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to UTi Worldwide Inc. (NASDAQ:UTIW). These stocks are Expeditors International of Washington (NASDAQ:EXPD), Air Transport Services Group Inc. (NASDAQ:ATSG), Roadrunner Transportation Systems Inc (NYSE:RRTS), Forward Air Corporation (NASDAQ:FWRD), and Hub Group Inc (NASDAQ:HUBG). All of these stocks are in the air delivery & freight services industry and their market caps are closest to UTIW’s market cap.