Are Hedge Funds Dumping VSE Corporation (VSEC)?

Because VSE Corporation (NASDAQ:VSEC) has faced falling interest from hedge fund managers, logic holds that there was a specific group of hedgies that decided to sell off their entire stakes last quarter. Interestingly, Peter Muller’s PDT Partners dropped the largest position of all the hedgies tracked by Insider Monkey, valued at an estimated $0.5 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also cut its stock, about $0.1 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 1 funds last quarter.

Let’s also examine hedge fund activity in other stocks similar to VSE Corporation (NASDAQ:VSEC). These stocks are Ivy High Income Opportunities Fund (NYSE:IVH), vTv Therapeutics Inc (NASDAQ:VTVT), CAI International Inc (NYSE:CAI), and New Home Company Inc (NYSE:NWHM). This group of stocks’ market values resemble VSEC’s market value.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $15 million, significantly above than the $5 million figure in VSEC’s case. CAI International Inc (NYSE:CAI) is the most popular stock in this table. On the other hand, Ivy High Income Opportunities Fund (NYSE:IVH) is the least popular one with only 4 bullish hedge fund positions. VSE Corporation (NASDAQ:VSEC) 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 CAI might be a better candidate to consider a long position.