Is Rofin-Sinar Technologies (RSTI) A Good Stock To Buy?

Legendary investors such as Leon Cooperman and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don’t publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That’s why we analyze the activity of those elite funds in these small-cap stocks. In the following paragraphs, we analyze Rofin-Sinar Technologies (NASDAQ:RSTI) from the perspective of those elite funds.

Is Rofin-Sinar Technologies (NASDAQ:RSTI) a buy, sell, or hold? Money managers are taking a bullish view. The number of long hedge fund positions increased by 2 in recent months. At the end of this article we will also compare RSTI to other stocks including ADTRAN, Inc. (NASDAQ:ADTN), Luminex Corporation (NASDAQ:LMNX), and Harsco Corporation (NYSE:HSC) to get a better sense of its popularity.

In today’s marketplace there are plenty of tools market participants have at their disposal to evaluate stocks. A duo of the most under-the-radar tools are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the best picks of the top money managers can outpace the S&P 500 by a healthy amount (see the details here).

With all of this in mind, let’s take a glance at the new action encompassing Rofin-Sinar Technologies (NASDAQ:RSTI).

How are hedge funds trading Rofin-Sinar Technologies (NASDAQ:RSTI)?

Heading into Q4, a total of 16 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 14% from the second quarter. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Royce & Associates, managed by Chuck Royce, holds the biggest position in Rofin-Sinar Technologies (NASDAQ:RSTI). Royce & Associates has a $61.1 million position in the stock, comprising 0.3% of its 13F portfolio. Sitting at the No. 2 spot is Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, which holds a $5.8 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining professional money managers that hold long positions comprise Mario Gabelli’s GAMCO Investors, D. E. Shaw’s D E Shaw and Jim Simons’ Renaissance Technologies.