Here is What Hedge Funds Think About Vectren Corporation (VVC)

Since Vectren Corporation (NYSE:VVC) has witnessed a declination in interest from the aggregate hedge fund industry, we can see that there exists a select few hedge funds that slashed their positions entirely last quarter. Interestingly, Glenn Russell Dubin’s Highbridge Capital Management said goodbye to the biggest investment of the “upper crust” of funds followed by Insider Monkey, valued at close to $5.8 million in stock, and John Overdeck and David Siegel’s Two Sigma Advisors was right behind this move, as the fund sold off about $2.6 million worth. These moves are important to note, as total hedge fund interest dropped by 3 funds last quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Vectren Corporation (NYSE:VVC) but similarly valued. We will take a look at Corrections Corp Of America (NYSE:CXW), MarketAxess Holdings Inc. (NASDAQ:MKTX), Spirit Airlines Incorporated (NASDAQ:SAVE), and Eagle Materials, Inc. (NYSE:EXP). All of these stocks’ market caps are similar to VVC’s market cap.

As you can see these stocks had an average of 26.5 hedge funds with bullish positions and the average amount invested in these stocks was $352 million. That figure was $70 million in VVC’s case. Spirit Airlines Incorporated (NASDAQ:SAVE) is the most popular stock in this table. On the other hand Corrections Corp Of America (NYSE:CXW) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Vectren Corporation (NYSE:VVC) is even less popular than CXW. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.