Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors’ money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.
Logitech International SA (USA) (NASDAQ:LOGI) was in 11 hedge funds’ portfolios at the end of the third quarter of 2016. LOGI investors should pay attention to an increase in enthusiasm from smart money lately. There were 8 hedge funds in our database with LOGI positions at the end of the previous quarter. At the end of this article we will also compare LOGI to other stocks including ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), Emcor Group Inc (NYSE:EME), and Nu Skin Enterprises, Inc. (NYSE:NUS) to get a better sense of its popularity.
Follow Logitech International S.a. (NASDAQ:LOGI)
Follow Logitech International S.a. (NASDAQ:LOGI)
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Now, let’s view the key action encompassing Logitech International SA (USA) (NASDAQ:LOGI).
What have hedge funds been doing with Logitech International SA (USA) (NASDAQ:LOGI)?
At the end of the third quarter, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 38% from the previous quarter. On the other hand, there were a total of 6 hedge funds with a bullish position in LOGI at the beginning of this year. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Renaissance Technologies, one of the biggest hedge funds in the world, has the number one position in Logitech International SA (USA) (NASDAQ:LOGI), worth close to $53.5 million, comprising 0.1% of its total 13F portfolio. The second most bullish fund manager is Peter Muller of PDT Partners, with a $4.4 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Remaining members of the smart money that are bullish encompass Cliff Asness’s AQR Capital Management, and John Overdeck and David Siegel’s Two Sigma Advisors. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
As one would reasonably expect, specific money managers have jumped into Logitech International SA (USA) (NASDAQ:LOGI) headfirst. PDT Partners, led by Peter Muller, established the most valuable position in Logitech International SA (USA) (NASDAQ:LOGI). PDT Partners had $4.4 million invested in the company at the end of the quarter. Neil Chriss’s Hutchin Hill Capital also initiated a $0.4 million position during the quarter. The other funds with brand new LOGI positions are David Costen Haley’s HBK Investments, Charles Davidson’s Wexford Capital, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.
Let’s also examine hedge fund activity in other stocks similar to Logitech International SA (USA) (NASDAQ:LOGI). These stocks are ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD), Emcor Group Inc (NYSE:EME), Nu Skin Enterprises, Inc. (NYSE:NUS), and Lancaster Colony Corp. (NASDAQ:LANC). This group of stocks’ market caps are similar to LOGI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ACAD | 28 | 1042328 | 3 |
| EME | 17 | 121478 | -3 |
| NUS | 23 | 213447 | 6 |
| LANC | 14 | 253505 | 0 |
As you can see these stocks had an average of 20.5 hedge funds with bullish positions and the average amount invested in these stocks was $408 million. That figure was $68 million in LOGI’s case. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is the most popular stock in this table. On the other hand Lancaster Colony Corp. (NASDAQ:LANC) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Logitech International SA (USA) (NASDAQ:LOGI) is even less popular than LANC. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.
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