Rambus Inc. (RMBS): Insiders Aren’t Crazy About It

Page 1 of 2

Rambus Inc. (NASDAQ:RMBS) investors should pay attention to a decrease in enthusiasm from smart money recently.

In the eyes of most investors, hedge funds are seen as unimportant, outdated financial vehicles of yesteryear. While there are greater than 8000 funds in operation at present, we at Insider Monkey hone in on the aristocrats of this club, about 450 funds. Most estimates calculate that this group has its hands on the lion’s share of all hedge funds’ total capital, and by keeping an eye on their top investments, we have determined a number of investment strategies that have historically beaten the S&P 500 index. Our small-cap hedge fund strategy outpaced 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 24 percentage points in 7 months (explore the details and some picks here).

Just as integral, positive insider trading activity is a second way to break down the marketplace. Obviously, there are a number of motivations for an upper level exec to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this tactic if piggybackers know what to do (learn more here).

Keeping this in mind, let’s take a glance at the key action encompassing Rambus Inc. (NASDAQ:RMBS).

What does the smart money think about Rambus Inc. (NASDAQ:RMBS)?

At year’s end, a total of 6 of the hedge funds we track held long positions in this stock, a change of 0% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their holdings substantially.

Rambus Inc. (NASDAQ:RMBS)Of the funds we track, Israel Englander’s Millennium Management had the largest position in Rambus Inc. (NASDAQ:RMBS), worth close to $6 million, accounting for less than 0.1%% of its total 13F portfolio. On Millennium Management’s heels is Jim Simons of Renaissance Technologies, with a $2.8 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include Ken Griffin’s Citadel Investment Group, D. E. Shaw’s D E Shaw and Ken Griffin’s Citadel Investment Group.

Seeing as Rambus Inc. (NASDAQ:RMBS) has witnessed a declination in interest from the entirety of the hedge funds we track, logic holds that there were a few funds that elected to cut their entire stakes in Q4. At the top of the heap, David Costen Haley’s HBK Investments said goodbye to the largest investment of the “upper crust” of funds we watch, totaling about $0.3 million in stock., and Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital was right behind this move, as the fund dropped about $0.1 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

What have insiders been doing with Rambus Inc. (NASDAQ:RMBS)?

Insider purchases made by high-level executives is most useful when the company in focus has seen transactions within the past six months. Over the last half-year time frame, Rambus Inc. (NASDAQ:RMBS) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Rambus Inc. (NASDAQ:RMBS). These stocks are Netlist, Inc. (NASDAQ:NLST), SemiLEDs Corporation (NASDAQ:LEDS), Micron Technology, Inc. (NASDAQ:MU), Integrated Silicon Solution, Inc. (NASDAQ:ISSI), and Spansion Inc. (NYSE:CODE). This group of stocks are the members of the semiconductor- memory chips industry and their market caps match RMBS’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!