This Metric Says You Are Smart to Sell RadiSys Corporation (RSYS)

In the financial world, there are tons of metrics investors can use to track Mr. Market. A duo of the most under-the-radar are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best money managers can trounce their index-focused peers by a solid amount (see just how much).

Equally as crucial, bullish insider trading sentiment is another way to look at the world of equities. As the old adage goes: there are plenty of incentives for a bullish insider to get rid of shares of his or her company, but only one, very obvious reason why they would buy. Many academic studies have demonstrated the impressive potential of this method if piggybackers understand where to look (learn more here).

Furthermore, let’s discuss the recent info for RadiSys Corporation (NASDAQ:RSYS).

RadiSys Corporation (NASDAQ:RSYS)

Hedge fund activity in RadiSys Corporation (NASDAQ:RSYS)

In preparation for the third quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of -22% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes meaningfully.

Out of the hedge funds we follow, Nierenberg Investment Management, managed by David Nierenberg, holds the biggest position in RadiSys Corporation (NASDAQ:RSYS). Nierenberg Investment Management has a $21.8 million position in the stock, comprising 16% of its 13F portfolio. The second largest stake is held by Chuck Royce of Royce & Associates, with a $7.2 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include Jim Simons’s Renaissance Technologies, D. E. Shaw’s D E Shaw and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.

As RadiSys Corporation (NASDAQ:RSYS) has witnessed a fall in interest from upper-tier hedge fund managers, we can see that there is a sect of fund managers who were dropping their full holdings at the end of the second quarter. Intriguingly, Israel Englander’s Millennium Management said goodbye to the biggest position of all the hedgies we watch, totaling about $0.1 million in call options.. Matthew Hulsizer’s fund, PEAK6 Capital Management, also sold off its call options., about $0.1 million worth. These moves are interesting, as total hedge fund interest was cut by 2 funds at the end of the second quarter.

What have insiders been doing with RadiSys Corporation (NASDAQ:RSYS)?

Legal insider trading, particularly when it’s bullish, is at its handiest when the company in question has experienced transactions within the past half-year. Over the latest 180-day time frame, RadiSys Corporation (NASDAQ:RSYS) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Using the returns shown by Insider Monkey’s strategies, regular investors should always track hedge fund and insider trading sentiment, and RadiSys Corporation (NASDAQ:RSYS) is no exception.

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