Hedge Funds Are Hyped About Rambus Inc. (RMBS)

With general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Citadel Investment Group assembled the most outsized call position in Rambus Inc. (NASDAQ:RMBS). Citadel Investment Group had $2.1 million invested in the company at the end of the quarter. George Soros’ Soros Fund Management also initiated a $1.6 million position during the quarter. The following funds were also among the new RMBS investors: Paul Marshall and Ian Wace’s Marshall Wace LLP, John Overdeck and David Siegel’s Two Sigma Advisors, and David Costen Haley’s HBK Investments.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Rambus Inc. (NASDAQ:RMBS) but similarly valued. We will take a look at Adecoagro SA (NYSE:AGRO), Stepan Company (NYSE:SCL), Headwaters Inc (NYSE:HW), and CONMED Corporation (NASDAQ:CNMD). This group of stocks’ market values are closest to RMBS’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AGRO 22 390611 -2
SCL 11 50414 0
HW 23 85313 0
CNMD 15 206084 -1

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $183 million. That figure was $47 million in RMBS’s case. Headwaters Inc (NYSE:HW) is the most popular stock in this table. On the other hand Stepan Company (NYSE:SCL) is the least popular one with only 11 bullish hedge fund positions. Rambus Inc. (NASDAQ:RMBS) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard HW might be a better candidate to consider taking a long position in.

Disclosure: None