Vince Holding Corp (VNCE): Hedge Funds Keep Heading Elsewhere

We view hedge fund activity in the stock as unfavorable, but in this case there was only a single hedge fund selling its entire position: Springbok Capital. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this instance because none of the 700+ hedge funds tracked by Insider Monkey identified VNCE as a viable investment and initiated a position in the stock.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Vince Holding Corp (NYSE:VNCE) but similarly valued. We will take a look at CNinsure Inc. (ADR) (NASDAQ:CISG), TravelCenters of America LLC (NYSEAMEX:TA), Phoenix New Media Ltd ADR (NYSE:FENG), and Golden Entertainment Inc (NASDAQ:GDEN). All of these stocks’ market caps match VNCE’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $23 million. That figure was $32 million in VNCE’s case. TravelCenters of America LLC (NYSEAMEX:TA) is the most popular stock in this table. On the other hand CNinsure Inc. (ADR) (NASDAQ:CISG) is the least popular one with only 7 bullish hedge fund positions. Vince Holding Corp (NYSE:VNCE) 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 TA might be a better candidate to consider taking a long position in.

Disclosure: None