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

Because Rubicon Minerals Corp. (USA) (NYSEAMEX:RBY) has witnessed declining sentiment from the aggregate hedge fund industry, logic holds that there is a sect of funds that elected to cut their full holdings heading into Q4. It’s worth mentioning that Peter Franklin Palmedo’s Sun Valley Gold dumped the largest position of the 700 funds watched by Insider Monkey, worth about $5.8 million in stock. Andrew Weiss’ fund, Weiss Asset Management, also dropped its stock, about $1.1 million worth. These moves are interesting, as total hedge fund interest fell by 3 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks similar to Rubicon Minerals Corp. (USA) (NYSEMKT:RBY). We will take a look at Arctic Cat Inc (NASDAQ:ACAT), Pace Holdings Corp (NASDAQ:PACE), Bank of Marin Bancorp (NASDAQ:BMRC), and The Bancorp, Inc. (NASDAQ:TBBK). This group of stocks’ market valuations match Rubicon Minerals Corp.’s market valuation.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $63 million. That figure was $28 million in Rubicon Minerals Corp.’s case. Pace Holdings Corp (NASDAQ:PACE) is the most popular stock in this table. On the other hand Bank of Marin Bancorp (NASDAQ:BMRC) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Rubicon Minerals Corp. (USA) (NYSEAMEX:RBY) is tied for the least popular with Bank of Marin Bancorp. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, it may simply be that not many have given it a good look. In either case more research is needed.