VASCO Data Security International, Inc. (VDSI): Are Hedge Funds Right About This Stock?

As industry-wide interest jumped, key money managers have jumped into VASCO Data Security International, Inc. (NASDAQ:VDSI) headfirst. PDT Partners, led by Peter Muller, established the most outsized position in VASCO Data Security International, Inc. (NASDAQ:VDSI). PDT Partners had $0.9 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $0.6 million investment in the stock during the quarter. The following funds were also among the new VDSI investors: Matthew Tewksbury’s Stevens Capital Management, Ken Griffin’s Citadel Investment Group, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as VASCO Data Security International, Inc. (NASDAQ:VDSI) but similarly valued. These stocks are Nautilus, Inc. (NYSE:NLS), Pinnacle Entertainment, Inc (NYSE:PNK), Solaredge Technologies Inc (NASDAQ:SEDG), and The Providence Service Corporation (NASDAQ:PRSC). This group of stocks’ market caps resemble VDSI’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $145 million. That figure was $63 million in VDSI’s case. Pinnacle Entertainment, Inc (NYSE:PNK) is the most popular stock in this table. On the other hand The Providence Service Corporation (NASDAQ:PRSC) is the least popular one with only 10 bullish hedge fund positions. VASCO Data Security International, Inc. (NASDAQ:VDSI) 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 PNK might be a better candidate to consider taking a long position in.

Disclosure: None