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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!