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Hedge funds devote significant resources to researching stocks. Sometimes hedge funds cross the line and try to obtain material non-public information before investing. Corporate insiders have material non-public information and they sometimes trade based on such information. Other times they have an edge because they know their companies and industries better than almost all other investors. We believe that by imitating the stock picks of these smartest investors in the world, investors are more likely to beat the market in the long term.

Below we compiled a list of 8 technology stocks both insiders and hedge funds are bullish about. All stocks were purchased by at least two insiders over the past three months and were held by at least 16 hedge funds tracked by us.

MEMC Electronic Materials, Inc. (WFR): MEMC Electronic Materials, Inc. is engaged in the development, manufacture, and sale of silicon wafers. WFR was held by 18 hedge funds at the end of June and was purchased by 11 insiders over the past three months. It has a market cap of $1.25B, a P/E ratio of 17.06, and returned -31.54% since the end of June. Martin Whitman had $27 million invested in WFR shares.

Fiserv, Inc. (NASDAQ:FISV): Fiserv, Inc. is a global provider of financial services technology solutions. FISV was held by 24 hedge funds at the end of June and was purchased by 3 insiders over the past three months. It has a market cap of $7.19B, a P/E ratio of 16.24, and returned -17.13% since the end of June. Glenn Greenberg, Ricky Sandler and Larry Robbins all invested over $100 million in FISV shares.

Cadence Design Systems, Inc. (NASDAQ:CDNS): Cadence develops electronic design automation, software, hardware, and silicon intellectual property. CDNS was held by 24 hedge funds at the end of June and was purchased by 3 insiders over the past three months. It has a market cap of $2.54B, a P/E ratio of 20.48, and returned -10.42% since the end of June. Mariko Gordon had $66 million of CDNS stocks.

Yahoo! Inc. (NASDAQ:YHOO): Yahoo is a digital media company. YHOO was held by 52 hedge funds at the end of June and was purchased by 2 insiders over the past three months. It has a market cap of $17.92 B, a P/E ratio of 16.11, and returned -3.32% since the end of June. Curtis Macnguyen had $239 million of YHOO stocks. Richard Perry and D. E. Shaw both had over $100 million invested in YHOO (check out Shaw’s top stock picks).

DST Systems, Inc. (NYSE:DST): DST offers information processing and software services and products. DST was held by 20 hedge funds at the end of June and was purchased by 2 insiders over the past three months. It has a market cap of $2.08B, a P/E ratio of 8.20, and returned -13.31% since the end of June. David Dreman had $40 million invested in DST (see David Dreman’s top stock picks).

Exterran Holdings, Inc. (NYSE:EXH): Exterran is a natural gas compression services company. EXH was held by 20 hedge funds at the end of June and was purchased by 2 insiders over the past three months. It has a market cap of $467.12M and returned -53.10% since the end of June. Ric Dillon had $16 million of EXH stocks.

Unisys Corporation (NYSE:UIS): Unisys Corporation is a global information technology company. UIS was held by 18 hedge funds at the end of June and was purchased by 2 insiders over the past three months. It has a market cap of $717.00M, a P/E ratio of 11.23, and returned -35.37% since the end of June. Jim Simons had $16 million invested in UIS (check out Jim Simons’ top stock picks).

First Solar, Inc. (NASDAQ:FSLR): First Solar manufactures and sells solar modules with an advanced thin-film semiconductor technology. FSLR was held by 16 hedge funds at the end of June and was purchased by 2 insiders over the past three months. It has a market cap of $5.59B, a P/E ratio of 11.03, and returned -45.36% since the end of June.



Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Insiders And Hedge Funds Are Crazy About These Tech Stocks