To the average investor, there are tons of metrics investors can use to monitor Mr. Market. A pair of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best fund managers can outclass the S&P 500 by a healthy amount (see just how much).
Just as necessary, bullish insider trading activity is another way to look at the world of equities. There are a variety of reasons for an upper level exec to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this method if you know what to do (learn more here).
Keeping this in mind, we’re going to analyze the recent info surrounding 21Vianet Group Inc (NASDAQ:VNET).
Hedge fund activity in 21Vianet Group Inc (NASDAQ:VNET)
At Q2’s end, a total of 9 of the hedge funds we track held long positions in this stock, a change of 13% from one quarter earlier. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings meaningfully.
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Consequently, particular hedge funds were breaking ground themselves. Joho Capital, managed by Robert Karr, assembled the biggest position in 21Vianet Group Inc (NASDAQ:VNET). Joho Capital had 24.4 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $14.1 million position during the quarter. The other funds with brand new VNET positions are Steven Cohen’s SAC Capital Advisors, John Wu’s Sureview Capital, and Jacob Gottlieb’s Visium Asset Management.
Insider trading activity in 21Vianet Group Inc (NASDAQ:VNET)
Legal insider trading, particularly when it’s bullish, is best served when the company in question has seen transactions within the past six months. Over the last 180-day time period, 21Vianet Group Inc (NASDAQ:VNET) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to 21Vianet Group Inc (NASDAQ:VNET). These stocks are Computer Task Group, Inc. (NASDAQ:CTGX), Sykes Enterprises, Incorporated (NASDAQ:SYKE), Greenway Medical Technologies, Inc. (NYSE:GWAY), Virtusa Corporation (NASDAQ:VRTU), and EPIQ Systems, Inc. (NASDAQ:EPIQ). This group of stocks are the members of the information technology services industry and their market caps are closest to VNET’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Computer Task Group, Inc. (NASDAQ:CTGX) | 5 | 0 | 0 |
| Sykes Enterprises, Incorporated (NASDAQ:SYKE) | 14 | 0 | 0 |
| Greenway Medical Technologies, Inc. (NYSE:GWAY) | 4 | 0 | 0 |
| Virtusa Corporation (NASDAQ:VRTU) | 11 | 0 | 0 |
| EPIQ Systems, Inc. (NASDAQ:EPIQ) | 8 | 0 | 0 |
Using the returns shown by the previously mentioned analyses, average investors must always watch hedge fund and insider trading sentiment, and 21Vianet Group Inc (NASDAQ:VNET) applies perfectly to this mantra.
