Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Funds Have Never Been More Bullish On Vocera Communications Inc (VCRA)

Our extensive research has shown that imitating the smart money can generate significant returns for retail investors, which is why we track nearly 750 active prominent money managers and analyze their quarterly 13F filings. The stocks that are heavily bought by hedge funds historically outperformed the market, though there is no shortage of high profile failures like hedge funds’ 2018 losses in Facebook and Apple. Let’s take a closer look at what the funds we track think about Vocera Communications Inc (NYSE:VCRA) in this article.

Vocera Communications Inc (NYSE:VCRA) shares haven’t seen a lot of action during the first quarter. Overall, hedge fund sentiment was unchanged. The stock was in 17 hedge funds’ portfolios at the end of the first quarter of 2019. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Marten Transport, Ltd (NASDAQ:MRTN), W&T Offshore, Inc. (NYSE:WTI), and Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) to gather more data points.

Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

Noam Gottesman GLG Partners

Noam Gottesman, GLG Partners

Let’s check out the recent hedge fund action regarding Vocera Communications Inc (NYSE:VCRA).

What does smart money think about Vocera Communications Inc (NYSE:VCRA)?

At the end of the first quarter, a total of 17 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the fourth quarter of 2018. Below, you can check out the change in hedge fund sentiment towards VCRA over the last 15 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

No of Hedge Funds with VCRA Positions

The largest stake in Vocera Communications Inc (NYSE:VCRA) was held by Renaissance Technologies, which reported holding $19.4 million worth of stock at the end of March. It was followed by GLG Partners with a $15.3 million position. Other investors bullish on the company included Endurant Capital Management, Sectoral Asset Management, and Millennium Management.

Since Vocera Communications Inc (NYSE:VCRA) has faced declining sentiment from the aggregate hedge fund industry, it’s easy to see that there was a specific group of funds that decided to sell off their entire stakes last quarter. Intriguingly, Richard Driehaus’s Driehaus Capital sold off the largest position of all the hedgies tracked by Insider Monkey, comprising about $18.8 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also cut its stock, about $5.7 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks similar to Vocera Communications Inc (NYSE:VCRA). These stocks are Marten Transport, Ltd (NASDAQ:MRTN), W&T Offshore, Inc. (NYSE:WTI), Vanda Pharmaceuticals Inc. (NASDAQ:VNDA), and PC Connection, Inc. (NASDAQ:CNXN). All of these stocks’ market caps resemble VCRA’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MRTN 17 48530 0
WTI 24 113104 3
VNDA 19 254336 0
CNXN 8 41972 2
Average 17 114486 1.25

View table here if you experience formatting issues.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $114 million. That figure was $73 million in VCRA’s case. W&T Offshore, Inc. (NYSE:WTI) is the most popular stock in this table. On the other hand PC Connection, Inc. (NASDAQ:CNXN) is the least popular one with only 8 bullish hedge fund positions. Vocera Communications Inc (NYSE:VCRA) 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. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately VCRA wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); VCRA investors were disappointed as the stock returned -1.4% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 13 of these stocks already outperformed the market so far in Q2.

Disclosure: None. This article was originally published at Insider Monkey.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...