Hedge Funds Are Dumping Vanguard Short Term Corporate Bond ETF (VCSH)

Seeing as Vanguard Short Term Corporate Bond ETF (NASDAQ:VCSH) has experienced falling interest from hedge fund managers, we can see that there exists a select few hedgies who were dropping their full holdings heading into Q4. It’s worth mentioning that Steven Owsley’s Madison Street Partners cut the largest stake of the “upper crust” of funds followed by Insider Monkey, valued at an estimated $0.7 million in stock. Israel Englander’s fund, Millennium Management, also sold off its stock, about $0.4 million worth of shares. These moves are important to note, as total hedge fund interest was cut by 2 funds heading into Q4.

Let’s check out hedge fund activity in other stocks similar to Vanguard Short Term Corporate Bond ETF (NASDAQ:VCSH). These stocks are Enbridge Energy Partners, L.P. (NYSE:EEP), CF Industries Holdings, Inc. (NYSE:CF), Discovery Communications Inc. (NASDAQ:DISCK), and Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA). This group of stocks’ market caps are closest to VCSH’s market cap.

As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $1.04 billion. That figure was just $19 million in VCSH’s case. CF Industries Holdings, Inc. (NYSE:CF) is the most popular stock in this table. On the other hand Enbridge Energy Partners, L.P. (NYSE:EEP) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Vanguard Short Term Corporate Bond ETF (NASDAQ:VCSH) is even less popular than EEP. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.