Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Funds Are Unloading Rubicon Minerals Corp. (USA) (RBY)

Hedge fund managers like David Einhorn, Dan Loeb, and Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Rubicon Minerals Corp. (USA) (NYSEAMEX:RBY).

Is Rubicon Minerals Corp. (USA) (NYSEAMEX:RBY) a buy, sell, or hold? The smart money is selling. The number of bullish hedge fund positions went down by 3 recently. At the end of this article we will also compare Rubicon Minerals Corp. to other stocks including Arctic Cat Inc (NASDAQ:ACAT), Pace Holdings Corp (NASDAQ:PACE), and Bank of Marin Bancorp (NASDAQ:BMRC) to get a better sense of its popularity.

Follow Rubicon Minerals Corp (NYSEMKT:RBY)
Trade (NYSEMKT:RBY) Now!

In the eyes of most shareholders, hedge funds are viewed as slow, outdated financial vehicles of the past. While there are greater than 8,000 funds trading at the moment, we choose to focus on the elite of this group, around 700 funds. These money managers oversee the majority of all hedge funds’ total asset base, and by paying attention to their top picks, Insider Monkey has discovered many investment strategies that have historically outstripped the market. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points a year for a decade in their back tests.

With all of this in mind, we’re going to review the recent action surrounding Rubicon Minerals Corp. (USA) (NYSEAMEX:RBY).

Hedge fund activity in Rubicon Minerals Corp. (USA) (NYSEAMEX:RBY)

At the end of the third quarter, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, a 43% slide from the second quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Jonathan Savitz’s Greywolf Capital Management has the most valuable position in Rubicon Minerals Corp. (USA) (NYSEAMEX:RBY), worth close to $26.3 million, accounting for 4.3% of its total 13F portfolio. The second-most bullish fund manager is Israel Englander of Millennium Management, with a $1.2 million position; less than 0.1% of its 13F portfolio is allocated to the company. Some other hedge funds and institutional investors with similar optimism consist of Eric Sprott’s Sprott Asset Management, and D E Shaw.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.