Is Ruckus Wireless Inc (RKUS) Going to Burn These Hedge Funds?

Because Ruckus Wireless Inc (NYSE:RKUS) has faced falling interest from the smart money, it’s easy to see that there is a sect of hedge funds that decided to sell off their entire stakes by the end of the third quarter. It’s worth mentioning that Bruce Kovner’s Caxton Associates LP dumped the biggest stake of all the hedgies tracked by Insider Monkey, worth an estimated $6.2 million in call options.. Dmitry Balyasny’s fund, Balyasny Asset Management, also said goodbye to its call options., about $3.1 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).

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Ruckus Wireless Inc (NYSE:RKUS) but similarly valued. We will take a look at Shenandoah Telecommunications Company (NASDAQ:SHEN), Celldex Therapeutics, Inc. (NASDAQ:CLDX), Diodes Incorporated (NASDAQ:DIOD), and TherapeuticsMD Inc (OTC:TXMD). This group of stocks’ market values match RKUS’s market value.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $57 million, compared to $128 million in RKUS’s case. Shenandoah Telecommunications Company (NASDAQ:SHEN) is the most popular stock in this table with 16 funds disclosing long positions, while Diodes Incorporated (NASDAQ:DIOD) is the least popular one. Compared to these stocks Ruckus Wireless Inc (NYSE:RKUS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially add it to your portfolio.