Published on 14 Jun 2021 on Insider Monkey via Yahoo Finance

Is Rubicon Technology, Inc. (RBCN) Going to Burn These Hedge Funds?

Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed in recent years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that certain hedge funds do have great stock picking skills (and we can identify these hedge funds in advance pretty accurately), so let’s take a glance at the smart money sentiment towards Rubicon Technology, Inc. (NASDAQ:RBCN).

Hedge fund interest in Rubicon Technology, Inc. (NASDAQ:RBCN) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that RBCN isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings). At the end of this article we will also compare RBCN to other stocks including Ashford Inc. (NYSE:AINC), Chicago Rivet & Machine Co. (NYSE:CVR), and China Liberal Education Holdings Limited (NASDAQ:CLEU) to get a better sense of its popularity.

Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can't expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds' moves today.