Should You Avoid Rubicon Technology, Inc. (RBCN)?

Rubicon Technology, Inc. (NASDAQ:RBCN)Is Rubicon Technology, Inc. (NASDAQ:RBCN) going to take off soon? The smart money is getting less bullish. The number of bullish hedge fund positions fell by 1 recently.

To the average investor, there are many metrics investors can use to track Mr. Market. A duo of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce their index-focused peers by a solid amount (see just how much).

Equally as integral, bullish insider trading sentiment is another way to break down the investments you’re interested in. Just as you’d expect, there are a number of reasons for an insider to sell shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the impressive potential of this strategy if you know what to do (learn more here).

Keeping this in mind, it’s important to take a gander at the key action surrounding Rubicon Technology, Inc. (NASDAQ:RBCN).

Hedge fund activity in Rubicon Technology, Inc. (NASDAQ:RBCN)

At the end of the first quarter, a total of 7 of the hedge funds we track held long positions in this stock, a change of -13% from the first quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were increasing their stakes substantially.

According to our comprehensive database, Royce & Associates, managed by Chuck Royce, holds the most valuable position in Rubicon Technology, Inc. (NASDAQ:RBCN). Royce & Associates has a $9 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is John W. Rogers of Ariel Investments, with a $3.6 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other hedgies with similar optimism include Christopher Zepf and Brian Thonn’s Kingdom Ridge Capital, Jim Simons’s Renaissance Technologies and Mike Vranos’s Ellington.

Due to the fact that Rubicon Technology, Inc. (NASDAQ:RBCN) has faced bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there exists a select few fund managers that decided to sell off their entire stakes at the end of the first quarter. Intriguingly, Louis Bacon’s Moore Global Investments said goodbye to the biggest investment of the “upper crust” of funds we monitor, comprising about $0.6 million in stock.. D. E. Shaw’s fund, D E Shaw, also said goodbye to its stock, about $0.5 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 1 funds at the end of the first quarter.

What have insiders been doing with Rubicon Technology, Inc. (NASDAQ:RBCN)?

Insider buying is particularly usable when the primary stock in question has experienced transactions within the past six months. Over the latest 180-day time frame, Rubicon Technology, Inc. (NASDAQ:RBCN) has seen zero unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

With the returns exhibited by our time-tested strategies, everyday investors must always watch hedge fund and insider trading sentiment, and Rubicon Technology, Inc. (NASDAQ:RBCN) is no exception.

Click here to learn why you should track hedge funds