At the top of the heap, Christopher James’s Partner Fund Management cut the largest position of all the hedgies monitored by Insider Monkey, valued at an estimated $72.2 million in stock. Jacob Gottlieb’s fund, Visium Asset Management, also dropped its stock, about $14.3 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s also examine hedge fund activity in other stocks similar to VMware, Inc. (NYSE:VMW). These stocks are Raytheon Company (NYSE:RTN), Twenty-First Century Fox Inc (NASDAQ:FOXA), Northrop Grumman Corporation (NYSE:NOC), and T MOBILE US INC (NYSE:TMUS). All of these stocks’ market caps match VMW’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 44.5 hedge funds with bullish positions and the average amount invested in these stocks was $2517 million. That figure was $960 million in VMW’s case. Twenty-First Century Fox Inc (NASDAQ:FOXA) is the most popular stock in this table. On the other hand Raytheon Company (NYSE:RTN) is the least popular one with only 31 bullish hedge fund positions. VMware, Inc. (NYSE:VMW) 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 FOXA might be a better candidate to consider a long position.