Riverbed Technology, Inc. (NASDAQ:RVBD) investors should be aware of an increase in hedge fund interest lately.
In today’s marketplace, there are dozens of methods shareholders can use to track stocks. A duo of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the top hedge fund managers can beat the S&P 500 by a superb margin (see just how much).
Equally as key, bullish insider trading sentiment is a second way to break down the world of equities. There are a number of motivations for an insider to cut shares of his or her company, but only one, very clear reason why they would buy. Various empirical studies have demonstrated the impressive potential of this method if piggybackers know where to look (learn more here).
With all of this in mind, it's important to take a look at the key action encompassing Riverbed Technology, Inc. (NASDAQ:RVBD).
At the end of the fourth quarter, a total of 23 of the hedge funds we track were bullish in this stock, a change of 15% from the third quarter. With the smart money's sentiment swirling, there exists an "upper tier" of notable hedge fund managers who were upping their holdings considerably.
When looking at the hedgies we track, Valinor Management LLC, managed by David Gallo, holds the most valuable position in Riverbed Technology, Inc. (NASDAQ:RVBD). Valinor Management LLC has a $84 million position in the stock, comprising 3.6% of its 13F portfolio. Sitting at the No. 2 spot is Ken Griffin of Citadel Investment Group, with a $40 million position; 0.7% of its 13F portfolio is allocated to the company. Some other hedge funds that hold long positions include Cliff Asness's AQR Capital Management, Robert Emil Zoellner's Alpine Associates and Jim Simons's Renaissance Technologies.
As industrywide interest jumped, some big names were leading the bulls' herd. Alpine Associates, managed by Robert Emil Zoellner, established the most outsized position in Riverbed Technology, Inc. (NASDAQ:RVBD). Alpine Associates had 16 million invested in the company at the end of the quarter. Jim Simons's Renaissance Technologies also made a $16 million investment in the stock during the quarter. The following funds were also among the new RVBD investors: SAC Subsidiary's Sigma Capital Management, George Soros's Soros Fund Management, and Mike Vranos's Ellington.
Insider purchases made by high-level executives is particularly usable when the company in question has seen transactions within the past half-year. Over the last six-month time frame, Riverbed Technology, Inc. (NASDAQ:RVBD) has experienced zero unique insiders buying, and 5 insider sales (see the details of insider trades here).
With the results shown by our studies, everyday investors must always keep an eye on hedge fund and insider trading activity, and Riverbed Technology, Inc. (NASDAQ:RVBD) is no exception.
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