Hedge Funds Are Buying Veritiv Corp (VRTV)

Consequently, key hedge funds were leading the bulls’ herd. Gotham Asset Management, led by Joel Greenblatt, assembled the most valuable position in Veritiv Corp (NYSE:VRTV). According to regulatory filings, the fund had $1.6 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $0.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies and Mike Vranos’s Ellington.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Veritiv Corp (NYSE:VRTV) but similarly valued. We will take a look at Denny’s Corporation (NASDAQ:DENN), Scorpio Tankers Inc. (NYSE:STNG), TrueCar Inc (NASDAQ:TRUE), and Ingles Markets, Incorporated (NASDAQ:IMKTA). This group of stocks’ market caps match VRTV’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 $80 million. That figure was $164 million in VRTV’s case. Scorpio Tankers Inc. (NYSE:STNG) is the most popular stock in this table. On the other hand Ingles Markets, Incorporated (NASDAQ:IMKTA) is the least popular one with only 10 bullish hedge fund positions. Veritiv Corp (NYSE:VRTV) 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 STNG might be a better candidate to consider taking a long position in.

Disclosure: None