Hedge Funds Are Betting On Vonage Holdings Corp. (VG)

As industrywide interest jumped, some big names have been driving this bullishness. Whale Rock Capital Management, managed by Alex Sacerdote, assembled the largest position in Vonage Holdings Corp. (NYSE:VG). According to regulatory filings, the fund had $15.5 million invested in the company at the end of the quarter. Philip Hempleman’s Ardsley Partners also made a $10.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Amish Mehta’s SQN Investors, Scott Lawrence Swid’s SLS Management, and Dennis Leibowitz’s Act II Capital.

Let’s now take a look at hedge fund activity in other stocks similar to Vonage Holdings Corp. (NYSE:VG). We will take a look at Provident Financial Services, Inc. (NYSE:PFS), ServisFirst Bancshares, Inc. (NASDAQ:SFBS), Astec Industries, Inc. (NASDAQ:ASTE), and Inphi Corporation (NYSE:IPHI). This group of stocks’ market caps resemble VG’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 $113 million. That figure was $165 million in VG’s case. Inphi Corporation (NYSE:IPHI) is the most popular stock in this table. On the other hand Provident Financial Services, Inc. (NYSE:PFS) is the least popular one with only 5 bullish hedge fund positions. Vonage Holdings Corp. (NYSE:VG) 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 IPHI might be a better candidate to consider a long position.

Disclosure: none.