Does Vicor Corp (VICR) Represent a Good Investment ?

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Judging by the fact that Vicor Corp (NASDAQ: VICR) has experienced a decline in interest from the smart money, it’s easy to see that there was a specific group of hedgies that slashed their entire stakes last quarter. Intriguingly, Matthew Hulsizer’s PEAK6 Capital Management dumped the biggest position of the “upper crust” of funds monitored by Insider Monkey, comprising about $0.3 million in stock. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also dumped its stock, about $0.2 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 1 fund last quarter.

Let’s now review hedge fund activity in other stocks similar to Vicor Corp (NASDAQ:VICR). These stocks are Blue Hills Bancorp Inc (NASDAQ:BHBK), Sangamo Biosciences, Inc. (NASDAQ:SGMO), Donegal Group Inc (NASDAQ:DGICA), and Cascade Bancorp (NASDAQ:CACB). This group of stocks’ market valuations resembles Vicor Corp (NASDAQ:VICR)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BHBK 10 25050 0
SGMO 19 66422 -3
DGICA 6 5583 1
CACB 6 83032 -1

As you can see, these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was $15 million in Vicor Corp (NASDAQ:VICR)’s case. Sangamo Biosciences, Inc. (NASDAQ:SGMO) is the most popular stock in this table. On the other hand, Donegal Group Inc (NASDAQ:DGICA) is the least popular one with only 6 bullish hedge fund positions. Although Vicor Corp (NASDAQ: VICR) is not the most popular stock among the ones in this group, it seems that hedge funds are quite interested in it. Even though this is a positive indication, we think that there are better choices for good investments. In this particular group, it is obvious that the best choice for a long position is Sangamo Biosciences, Inc. (NASDAQ:SGMO).

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