Where Do Hedge Funds Stand On Lightspeed POS Inc. (LSPD)?

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. We have processed the filings of the more than 866 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their March 31st holdings, data that is available nowhere else. Should you consider Lightspeed POS Inc. (NYSE:LSPD) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.

Is Lightspeed POS Inc. (NYSE:LSPD) worth your attention right now? The smart money was in an optimistic mood. The number of long hedge fund positions improved by 1 recently. Lightspeed POS Inc. (NYSE:LSPD) was in 21 hedge funds’ portfolios at the end of March. The all time high for this statistic was previously 20. 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 Q1 rankings). There were 20 hedge funds in our database with LSPD holdings at the end of December.

If you’d ask most traders, hedge funds are seen as worthless, old investment tools of the past. While there are more than 8000 funds with their doors open today, We hone in on the elite of this club, approximately 850 funds. These money managers administer the majority of the smart money’s total asset base, and by shadowing their unrivaled equity investments, Insider Monkey has come up with many investment strategies that have historically surpassed the broader indices. Insider Monkey’s flagship short hedge fund strategy surpassed the S&P 500 short ETFs by around 20 percentage points a year since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .

Philippe Laffont of Coatue Management

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Chuck Schumer recently stated that marijuana legalization will be a Senate priority. So, we are checking out this under the radar stock that will benefit from this. We go through lists like the 10 best battery 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 we’re going to analyze the key hedge fund action encompassing Lightspeed POS Inc. (NYSE:LSPD).

Do Hedge Funds Think LSPD Is A Good Stock To Buy Now?

At the end of the first quarter, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 5% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards LSPD over the last 23 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Among these funds, Vista Equity Partners held the most valuable stake in Lightspeed POS Inc. (NYSE:LSPD), which was worth $246.9 million at the end of the fourth quarter. On the second spot was Echo Street Capital Management which amassed $105.7 million worth of shares. Adage Capital Management, Citadel Investment Group, 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 Strycker View Capital allocated the biggest weight to Lightspeed POS Inc. (NYSE:LSPD), around 4.42% of its 13F portfolio. BlueMar Capital Management is also relatively very bullish on the stock, setting aside 4.07 percent of its 13F equity portfolio to LSPD.

Now, key money managers were leading the bulls’ herd. Shannon River Fund Management, managed by Spencer M. Waxman, created the biggest position in Lightspeed POS Inc. (NYSE:LSPD). Shannon River Fund Management had $19.4 million invested in the company at the end of the quarter. Usman Waheed’s Strycker View Capital also initiated a $6.9 million position during the quarter. The following funds were also among the new LSPD investors: Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, Michael Gelband’s ExodusPoint Capital, and Ryan Tolkin (CIO)’s Schonfeld Strategic Advisors.

Let’s now take a look at hedge fund activity in other stocks similar to Lightspeed POS Inc. (NYSE:LSPD). These stocks are Berry Global Group Inc (NYSE:BERY), Globant SA (NYSE:GLOB), Acceleron Pharma Inc (NASDAQ:XLRN), Beyond Meat, Inc. (NASDAQ:BYND), Polaris Inc. (NYSE:PII), Ares Capital Corporation (NASDAQ:ARCC), and CyrusOne Inc (NASDAQ:CONE). This group of stocks’ market valuations are closest to LSPD’s market valuation.

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As you can see these stocks had an average of 25.9 hedge funds with bullish positions and the average amount invested in these stocks was $644 million. That figure was $644 million in LSPD’s case. Berry Global Group Inc (NYSE:BERY) is the most popular stock in this table. On the other hand Ares Capital Corporation (NASDAQ:ARCC) is the least popular one with only 15 bullish hedge fund positions. Lightspeed POS 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 47.1. 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 23.8% in 2021 through July 16th and still beat the market by 7.7 percentage points. A small number of hedge funds were also right about betting on LSPD as the stock returned 24.6% since the end of the first quarter (through 7/16) and outperformed the market by an even larger margin.

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Disclosure: None. This article was originally published at Insider Monkey.

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