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Is Ruckus Wireless Inc (RKUS) Going to Burn These Hedge Funds?

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Before we spend many hours researching a company, we’d like to analyze what hedge funds and billionaire investors think of the stock first. We would like to do so because the elite investors’ consensus returns have been exceptional. The top 30 S&P 500 stocks among hedge funds at the end of September 2014 yielded an average return of 9.5% during the last 12 months ending in October 30. Sixty three percent of these 30 stocks outperformed the market. Although the elite funds occasionally have their duds, such as Micron and Anadarko Petroleum, which fell 50% and 26%, respectively during the same time period, the hedge fund picks seem to work on average. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Ruckus Wireless Inc (NYSE:RKUS).

Ruckus Wireless Inc (NYSE:RKUS) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 19 hedge funds’ portfolios at the end of September. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Shenandoah Telecommunications Company (NASDAQ:SHEN), Celldex Therapeutics, Inc. (NASDAQ:CLDX), and Diodes Incorporated (NASDAQ:DIOD) to gather more data points.

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At the moment there are a large number of tools market participants employ to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best hedge fund managers can trounce the market by a very impressive margin (see the details here).

Now, let’s take a look at the key action regarding Ruckus Wireless Inc (NYSE:RKUS).

What have hedge funds been doing with Ruckus Wireless Inc (NYSE:RKUS)?

At the end of the third quarter, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, unchanged on the quarter. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Anand Parekh’s Alyeska Investment Group has the number one position in Ruckus Wireless Inc (NYSE:RKUS), worth close to $30.3 million, amounting to 0.4% of its total 13F portfolio. The second most bullish fund is John Brennan of Sirios Capital Management, with a $20.7 million position; the fund has 0.7% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that hold long positions include Brian Ashford-Russell and Tim Woolley’s Polar Capital, Ken Hahn’s Quentec Asset Management and Jim Simons’ Renaissance Technologies.

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