The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds’ positions on March 31st, about a week after the S&P 500 Index bottomed. We at Insider Monkey have made an extensive database of more than 821 of those established hedge funds and famous value investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Logitech International SA (NASDAQ:LOGI) based on those filings.
Is Logitech International SA (NASDAQ:LOGI) a cheap stock to buy now? Hedge funds are becoming hopeful. The number of bullish hedge fund positions improved by 2 lately. Our calculations also showed that LOGI isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
To most stock holders, hedge funds are viewed as slow, old financial vehicles of the past. While there are over 8000 funds trading at present, Our experts choose to focus on the moguls of this group, around 850 funds. It is estimated that this group of investors oversee most of the smart money’s total capital, and by tracking their highest performing stock picks, Insider Monkey has unsheathed several investment strategies that have historically surpassed the S&P 500 index. Insider Monkey’s flagship short hedge fund strategy outperformed the S&P 500 short ETFs by around 20 percentage points annually since its inception in March 2017. Our portfolio of short stocks lost 36% since February 2017 (through May 18th) even though the market was up 30% during the same period. We just shared a list of 8 short targets in our latest quarterly update .
Lee Ainslie of Maverick Capital
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, we take a look at lists like the 10 easiest car rental companies to identify emerging trends that are likely to lead to 1000% gains in the coming years. We interview hedge fund managers and ask them about their best ideas. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. For example we are checking out stocks recommended/scorned by legendary Bill Miller. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 in February after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind let’s take a gander at the recent hedge fund action surrounding Logitech International SA (NASDAQ:LOGI).
Hedge fund activity in Logitech International SA (NASDAQ:LOGI)
At the end of the first quarter, a total of 15 of the hedge funds tracked by Insider Monkey were long this stock, a change of 15% from the fourth quarter of 2019. On the other hand, there were a total of 15 hedge funds with a bullish position in LOGI a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Renaissance Technologies has the number one position in Logitech International SA (NASDAQ:LOGI), worth close to $109.6 million, comprising 0.1% of its total 13F portfolio. Coming in second is Two Sigma Advisors, led by John Overdeck and David Siegel, holding a $31.2 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining professional money managers with similar optimism contain Dmitry Balyasny’s Balyasny Asset Management, Lee Ainslie’s Maverick Capital and Peter Muller’s PDT Partners. In terms of the portfolio weights assigned to each position PDT Partners allocated the biggest weight to Logitech International SA (NASDAQ:LOGI), around 0.48% of its 13F portfolio. Intrinsic Edge Capital is also relatively very bullish on the stock, earmarking 0.21 percent of its 13F equity portfolio to LOGI.
With a general bullishness amongst the heavyweights, key hedge funds have been driving this bullishness. Schonfeld Strategic Advisors, managed by Ryan Tolkin (CIO), initiated the biggest position in Logitech International SA (NASDAQ:LOGI). Schonfeld Strategic Advisors had $1.8 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also initiated a $1.7 million position during the quarter. The following funds were also among the new LOGI investors: Mark Coe’s Intrinsic Edge Capital and Paul Tudor Jones’s Tudor Investment Corp.
Let’s go over hedge fund activity in other stocks similar to Logitech International SA (NASDAQ:LOGI). These stocks are Amdocs Limited (NASDAQ:DOX), WestRock Company (NYSE:WRK), Cognex Corporation (NASDAQ:CGNX), and 58.com Inc (NYSE:WUBA). This group of stocks’ market caps resemble LOGI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DOX | 23 | 444185 | -3 |
| WRK | 26 | 412009 | -9 |
| CGNX | 16 | 153965 | -8 |
| WUBA | 21 | 292533 | 0 |
| Average | 21.5 | 325673 | -5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 21.5 hedge funds with bullish positions and the average amount invested in these stocks was $326 million. That figure was $187 million in LOGI’s case. WestRock Company (NYSE:WRK) is the most popular stock in this table. On the other hand Cognex Corporation (NASDAQ:CGNX) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Logitech International SA (NASDAQ:LOGI) is even less popular than CGNX. Hedge funds clearly dropped the ball on LOGI as the stock delivered strong returns, though hedge funds’ consensus picks still generated respectable returns. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 13.3% in 2020 through June 25th and still beat the market by 16.8 percentage points. A small number of hedge funds were also right about betting on LOGI as the stock returned 46.5% so far in the second quarter and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
