Hedge Funds Aren’t Crazy About 21Vianet Group Inc (VNET) Anymore

Seeing as 21Vianet Group Inc (NASDAQ:VNET) has experienced a declination in interest from the smart money, it’s safe to say that there is a sect of fund managers that elected to cut their entire stakes in the third quarter. Intriguingly, Brian Taylor’s Pine River Capital Management sold off the biggest position of all the hedgies followed by Insider Monkey, totaling about $5.7 million in stock. Rob Romero’s fund, Connective Capital Management, also dropped its stock, about $0.9 million worth of VNET shares. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as 21Vianet Group Inc (NASDAQ:VNET) but similarly valued. These stocks are Galapagos NV (ADR) (NASDAQ:GLPG), Commercial Metals Company (NYSE:CMC), Universal Display Corporation (NASDAQ:OLED), and HubSpot Inc (NYSE:HUBS). All of these stocks’ market caps are closest to VNET’s market cap.

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 $119 million. That figure was $209 million in VNET’s case. Commercial Metals Company (NYSE:CMC) is the most popular stock in this table, while HubSpot Inc (NYSE:HUBS) is the laggard with only 10 bullish hedge fund positions. 21Vianet Group Inc (NASDAQ:VNET) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, yet we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CMC might be a better candidate to consider a long position.