Hedge Funds Are Dumping 21Vianet Group Inc (VNET)

Due to the fact that 21Vianet Group Inc (NASDAQ:VNET) has weathered bearish sentiment from the smart money, we can see that there lies a certain “tier” of money managers who were dropping their full holdings by the end of the third quarter. Interestingly, Frank Brosens’ Taconic Capital got rid of the largest investment of the 700 funds tracked by Insider Monkey, worth close to $11.7 million in stock. Jim Simons’ fund, Renaissance Technologies, also dumped its stock, about $7.4 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as 21Vianet Group Inc (NASDAQ:VNET) but similarly valued. We will take a look at Del Taco Restaurants Inc (NASDAQ:TACO), KEYW Holding Corp. (NASDAQ:KEYW), Intersect ENT Inc (NASDAQ:XENT), and Vicor Corp (NASDAQ:VICR). This group of stocks’ market caps are similar to VNET’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $44 million. That figure was $5 million in VNET’s case. Del Taco Restaurants Inc (NASDAQ:TACO) is the most popular stock in this table. On the other hand Vicor Corp (NASDAQ:VICR) is the least popular one with only 6 bullish hedge fund positions. 21Vianet Group Inc (NASDAQ:VNET) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TACO might be a better candidate to consider taking a long position in.

Disclosure: None