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Hedge Funds Aren’t Crazy About RPX Corp (RPXC) Anymore

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RPX Corp (NASDAQ:RPXC) was in 11 hedge funds’ portfolio at the end of March. RPXC has seen a decrease in hedge fund interest lately. There were 12 hedge funds in our database with RPXC positions at the end of the previous quarter.


To most stock holders, hedge funds are viewed as worthless, old financial vehicles of yesteryear. While there are over 8000 funds with their doors open at the moment, we choose to focus on the upper echelon of this club, close to 450 funds. It is widely believed that this group controls most of all hedge funds’ total capital, and by paying attention to their best stock picks, we have uncovered a number of investment strategies that have historically beaten the market. Our small-cap hedge fund strategy outperformed 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 trumped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Equally as beneficial, optimistic insider trading sentiment is another way to break down the financial markets. There are a number of motivations for an executive to get rid of shares of his or her company, but only one, very simple reason why they would buy. Many academic studies have demonstrated the useful potential of this strategy if you understand what to do (learn more here).

Now, let’s take a gander at the recent action encompassing RPX Corp (NASDAQ:RPXC).

What does the smart money think about RPX Corp (NASDAQ:RPXC)?

At Q1’s end, a total of 11 of the hedge funds we track were bullish in this stock, a change of -8% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings significantly.

Of the funds we track, Eric Bannasch’s Cadian Capital had the most valuable position in RPX Corp (NASDAQ:RPXC), worth close to $46.6 million, comprising 1.3% of its total 13F portfolio. On Cadian Capital’s heels is Renaissance Technologies, managed by Jim Simons, which held a $3.7 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Ken Griffin’s Citadel Investment Group, Joel Greenblatt’s Gotham Asset Management and Chuck Royce’s Royce & Associates.

Since RPX Corp (NASDAQ:RPXC) has experienced bearish sentiment from the aggregate hedge fund industry, we can see that there were a few hedge funds that decided to sell off their full holdings last quarter. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital said goodbye to the biggest stake of the “upper crust” of funds we watch, valued at close to $0.6 million in stock., and Neil Chriss of Hutchin Hill Capital was right behind this move, as the fund dumped about $0.4 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 1 funds last quarter.

How are insiders trading RPX Corp (NASDAQ:RPXC)?

Insider buying is best served when the primary stock in question has seen transactions within the past six months. Over the latest six-month time period, RPX Corp (NASDAQ:RPXC) has experienced 1 unique insiders buying, and 9 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to RPX Corp (NASDAQ:RPXC). These stocks are Team, Inc. (NYSE:TISI), InnerWorkings, Inc. (NASDAQ:INWK), LivePerson, Inc. (NASDAQ:LPSN), WNS (Holdings) Limited (ADR) (NYSE:WNS), and Insperity Inc (NYSE:NSP). This group of stocks belong to the business services industry and their market caps match RPXC’s market cap.

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