21Vianet Group Inc (NASDAQ:VNET) investors should pay attention to an increase in hedge fund interest recently.
In the 21st century investor’s toolkit, there are tons of metrics shareholders can use to watch their holdings. A duo of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can trounce their index-focused peers by a solid margin (see just how much).
Equally as key, optimistic insider trading activity is a second way to parse down the world of equities. There are many motivations for a corporate insider to drop shares of his or her company, but only one, very simple reason why they would buy. Various empirical studies have demonstrated the market-beating potential of this tactic if piggybackers understand where to look (learn more here).
With these “truths” under our belt, let’s take a peek at the latest action surrounding 21Vianet Group Inc (NASDAQ:VNET).
What have hedge funds been doing with 21Vianet Group Inc (NASDAQ:VNET)?
At year’s end, a total of 8 of the hedge funds we track held long positions in this stock, a change of 14% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes considerably.
Of the funds we track, Joho Capital, managed by Robert Karr, holds the most valuable position in 21Vianet Group Inc (NASDAQ:VNET). Joho Capital has a $17.3 million position in the stock, comprising 2.3% of its 13F portfolio. The second largest stake is held by Citadel Investment Group, managed by Ken Griffin, which held a $14.5 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds that hold long positions include John Kleinheinz’s Kleinheinz Capital Partners, Steven Cohen’s SAC Capital Advisors and Jeffrey Vinik’s Vinik Asset Management.
Now, key money managers were leading the bulls’ herd. Vinik Asset Management, managed by Jeffrey Vinik, created the most valuable position in 21Vianet Group Inc (NASDAQ:VNET). Vinik Asset Management had 7.5 million invested in the company at the end of the quarter. Jacob Gottlieb’s Visium Asset Management also initiated a $0.5 million position during the quarter.
How are insiders trading 21Vianet Group Inc (NASDAQ:VNET)?
Bullish insider trading is best served when the company we’re looking at has experienced transactions within the past half-year. Over the latest half-year time period, 21Vianet Group Inc (NASDAQ:VNET) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity 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). All of these stocks are in the information technology services industry and their market caps match VNET’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Computer Task Group, Inc. (NASDAQ:CTGX) | 5 | 1 | 1 |
| Sykes Enterprises, Incorporated (NASDAQ:SYKE) | 13 | 0 | 2 |
| Greenway Medical Technologies, Inc. (NYSE:GWAY) | 1 | 1 | 2 |
| Virtusa Corporation (NASDAQ:VRTU) | 4 | 2 | 8 |
| EPIQ Systems, Inc. (NASDAQ:EPIQ) | 5 | 2 | 0 |
With the results shown by our tactics, retail investors should always monitor hedge fund and insider trading sentiment, and 21Vianet Group Inc (NASDAQ:VNET) is no exception.
