Is Veeva Systems Inc (VEEV) A Good Investment?

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Now, key money managers have jumped into Veeva Systems Inc (NYSE:VEEV) headfirst. Polar Capital, managed by Brian Ashford-Russell and Tim Woolley, established the biggest position in Veeva Systems Inc (NYSE:VEEV). Polar Capital had $4.2 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also initiated a $1.8 million position during the quarter. The other funds with new positions in the stock are Matthew Tewksbury’s Stevens Capital Management and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Veeva Systems Inc (NYSE:VEEV) but similarly valued. These stocks are ViaSat, Inc. (NASDAQ:VSAT), Hawaiian Electric Industries, Inc. (NYSE:HE), Inovalon Holdings Inc (NASDAQ:INOV), and Royal Gold, Inc (USA) (NASDAQ:RGLD). This group of stocks’ market valuations are similar to VEEV’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
VSAT 12 1552133 -2
HE 10 44851 4
INOV 6 32465 -1
RGLD 25 354082 7

As you can see these stocks had an average of 13.25 hedge funds with bullish positions and the average amount invested in these stocks was $496 million, higher than the $110 million figure in VEEV’s case. Royal Gold, Inc (USA) (NASDAQ:RGLD) is the most popular stock in this table with 25 long positions, as opposed to Inovalon Holdings Inc (NASDAQ:INOV), which is the least popular one with only 6 funds holding shares. Veeva Systems Inc (NYSE:VEEV) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RGLD might be a better candidate to consider a long position.

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