Vringo, Inc. (VRNG): Are Hedge Funds Right About This Stock?

Page 1 of 2

Is Vringo, Inc. (NYSEAMEX:VRNG) the right investment to pursue these days? Investors who are in the know are taking a bullish view. The number of long hedge fund bets improved by 2 in recent months.

In the eyes of most investors, hedge funds are perceived as underperforming, old investment vehicles of yesteryear. While there are greater than 8000 funds with their doors open today, we at Insider Monkey look at the aristocrats of this club, close to 450 funds. Most estimates calculate that this group oversees the lion’s share of all hedge funds’ total asset base, and by paying attention to their best stock picks, we have spotted a number of investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).

Vringo, Inc. (NASDAQ:VRNG)

Just as key, positive insider trading activity is another way to parse down the marketplace. Just as you’d expect, there are plenty of reasons for a corporate insider to drop shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many empirical studies have demonstrated the impressive potential of this method if shareholders know where to look (learn more here).

Keeping this in mind, we’re going to take a look at the recent action encompassing Vringo, Inc. (NYSEAMEX:VRNG).

What have hedge funds been doing with Vringo, Inc. (NYSEAMEX:VRNG)?

At the end of the fourth quarter, a total of 6 of the hedge funds we track were long in this stock, a change of 50% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes substantially.

Of the funds we track, Millennium Management, managed by Israel Englander, holds the most valuable position in Vringo, Inc. (NYSEAMEX:VRNG). Millennium Management has a $3.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Millennium Management’s heels is Mark Kingdon of Kingdon Capital, with a $1.4 million call position; 0.1% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Ken Griffin’s Citadel Investment Group, and Andy Redleaf’s Whitebox Advisors.

As industrywide interest jumped, key money managers have been driving this bullishness. Kingdon Capital, managed by Mark Kingdon, established the biggest call position in Vringo, Inc. (NYSEAMEX:VRNG). Kingdon Capital had 1.4 million invested in the company at the end of the quarter. Andy Redleaf’s Whitebox Advisors also initiated a $0.5 million position during the quarter. The other funds with new positions in the stock are Mark Kingdon’s Kingdon Capital and Steven Cohen’s SAC Capital Advisors.

How have insiders been trading Vringo, Inc. (NYSEAMEX:VRNG)?

Insider buying is particularly usable when the primary stock in question has experienced transactions within the past half-year. Over the last 180-day time period, Vringo, Inc. (NYSEAMEX:VRNG) has experienced zero unique insiders buying, and 8 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Vringo, Inc. (NYSEAMEX:VRNG). These stocks are Actuate Corporation (NASDAQ:BIRT), Market Leader Inc (NASDAQ:LEDR), Guidance Software, Inc. (NASDAQ:GUID), RealNetworks Inc (NASDAQ:RNWK), and Active Network Inc (NYSE:ACTV). This group of stocks are the members of the application software industry and their market caps resemble VRNG’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!