Verisign, Inc. (VRSN): Hedge Funds In Wait-and-See Mode

Many investors, including Paul Tudor Jones or Stan Druckenmiller, have been saying before last year’s Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the first half of 2019, most investors recovered all of their Q4 losses as sentiment shifted and optimism dominated the US China trade negotiations. Nevertheless, many of the stocks that delivered strong returns in the first half still sport strong fundamentals and their gains were more related to the general market sentiment rather than their individual performance and hedge funds kept their bullish stance. In this article we will find out how hedge fund sentiment to Verisign, Inc. (NASDAQ:VRSN) changed recently.

Verisign, Inc. (NASDAQ:VRSN) was in 30 hedge funds’ portfolios at the end of September. VRSN investors should pay attention to a decrease in support from the world’s most elite money managers lately. There were 32 hedge funds in our database with VRSN positions at the end of the previous quarter. Our calculations also showed that VRSN isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings).

Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

In the 21st century investor’s toolkit there are plenty of methods stock traders can use to size up their holdings. A couple of the most innovative methods are hedge fund and insider trading indicators. We have shown that, historically, those who follow the best picks of the top fund managers can outpace the S&P 500 by a very impressive amount (see the details here).

William Von Mueffling of Cantillon Capital Management

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