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

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Marshall Wace LLP. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically, a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was BlueCrest Capital Mgmt.).

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 Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), Life Storage Inc (NYSE:LSI), Manhattan Associates, Inc. (NASDAQ:MANH), and Graco Inc. (NYSE:GGG). All of these stocks’ market caps are closest to VVC’s market cap.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $216 million. That figure was $122 million in VVC’s case. Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) is the most popular stock in this table. On the other hand Graco Inc. (NYSE:GGG) is the least popular one with only 12 bullish hedge fund positions. Vectren Corporation (NYSE:VVC) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard GOLD might be a better candidate to consider taking a long position in.

Disclosure: none