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Is Rambus Inc. (RMBS) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, specific money managers have jumped into Rambus Inc. (NASDAQ:RMBS) headfirst. Soros Fund Management, managed by George Soros, created the biggest position in Rambus Inc. (NASDAQ:RMBS). Soros Fund Management had $1.1 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $0.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Peter Muller’s PDT Partners, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s also examine 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 First Midwest Bancorp Inc (NASDAQ:FMBI), Pennsylvania R.E.I.T. (NYSE:PEI), Horace Mann Educators Corporation (NYSE:HMN), and FCB Financial Holdings Inc (NYSE:FCB). All of these stocks’ market caps match RMBS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FMBI 14 84420 1
PEI 8 22888 -4
HMN 6 51895 -1
FCB 22 201174 7

As you can see these stocks had an average of 12.5 hedge funds with bullish positions and the average amount invested in these stocks was $90 million. That figure was $58 million in RMBS’s case. FCB Financial Holdings Inc (NYSE:FCB) is the most popular stock in this table. On the other hand Horace Mann Educators Corporation (NYSE:HMN) is the least popular one with only 6 bullish hedge fund positions. Rambus Inc. (NASDAQ:RMBS) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal that makes RMBS worth a closer look.

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