The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 873 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of June 30th, 2021. In this article we are going to take a look at smart money sentiment towards Lightspeed Commerce Inc. (NYSE:LSPD).
Is Lightspeed Commerce Inc. (NYSE:LSPD) ready to rally soon? The smart money was betting on the stock. The number of bullish hedge fund bets advanced by 8 lately. Lightspeed Commerce Inc. (NYSE:LSPD) was in 29 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic was previously 21. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that LSPD isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). There were 21 hedge funds in our database with LSPD holdings at the end of March.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can’t expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 79 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds’ moves today.
Philippe Laffont of Coatue Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now let’s take a glance at the key hedge fund action encompassing Lightspeed Commerce Inc. (NYSE:LSPD).
Do Hedge Funds Think LSPD Is A Good Stock To Buy Now?
At Q2’s end, a total of 29 of the hedge funds tracked by Insider Monkey were long this stock, a change of 38% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in LSPD over the last 24 quarters. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
Among these funds, Echo Street Capital Management held the most valuable stake in Lightspeed Commerce Inc. (NYSE:LSPD), which was worth $145.5 million at the end of the second quarter. On the second spot was Vista Equity Partners which amassed $116 million worth of shares. Adage Capital Management, Islet Management, and Coatue Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position BlueMar Capital Management allocated the biggest weight to Lightspeed Commerce Inc. (NYSE:LSPD), around 6% of its 13F portfolio. Berylson Capital Partners is also relatively very bullish on the stock, designating 4.32 percent of its 13F equity portfolio to LSPD.
Now, specific money managers were breaking ground themselves. Berylson Capital Partners, managed by James Thomas Berylson, established the most outsized position in Lightspeed Commerce Inc. (NYSE:LSPD). Berylson Capital Partners had $19.5 million invested in the company at the end of the quarter. Jeffrey Talpins’s Element Capital Management also initiated a $12.5 million position during the quarter. The other funds with new positions in the stock are Frank Fu’s CaaS Capital, Zach Schreiber’s Point State Capital, and Michael Rockefeller and KarláKroeker’s Woodline Partners.
Let’s also examine hedge fund activity in other stocks similar to Lightspeed Commerce Inc. (NYSE:LSPD). These stocks are Repligen Corporation (NASDAQ:RGEN), ICON Public Limited Company (NASDAQ:ICLR), Magellan Midstream Partners, L.P. (NYSE:MMP), Teva Pharmaceutical Industries Limited (NYSE:TEVA), Regency Centers Corp (NASDAQ:REG), Norwegian Cruise Line Holdings Ltd (NYSE:NCLH), and Five Below Inc (NASDAQ:FIVE). This group of stocks’ market caps match LSPD’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RGEN | 35 | 1285346 | -3 |
| ICLR | 39 | 1301455 | 10 |
| MMP | 13 | 89137 | -1 |
| TEVA | 22 | 947100 | -2 |
| REG | 25 | 192591 | 8 |
| NCLH | 43 | 606617 | 9 |
| FIVE | 42 | 783248 | -1 |
| Average | 31.3 | 743642 | 2.9 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 31.3 hedge funds with bullish positions and the average amount invested in these stocks was $744 million. That figure was $649 million in LSPD’s case. Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) is the most popular stock in this table. On the other hand Magellan Midstream Partners, L.P. (NYSE:MMP) is the least popular one with only 13 bullish hedge fund positions. Lightspeed Commerce Inc. (NYSE:LSPD) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for LSPD is 66.7. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24.9% in 2021 through October 15th and still beat the market by 4.5 percentage points. A small number of hedge funds were also right about betting on LSPD as the stock returned 18.1% since the end of the second quarter (through 10/15) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
