Is Love LogMeIn Inc (NASDAQ:LOGM) a splendid investment now? The best stock pickers are taking a pessimistic view. The number of long hedge fund bets were cut by 1 lately.
In the 21st century investor’s toolkit, there are plenty of gauges market participants can use to monitor publicly traded companies. A duo of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can beat the broader indices by a very impressive margin (see just how much).
Equally as integral, bullish insider trading sentiment is another way to parse down the world of equities. As the old adage goes: there are lots of reasons for a bullish insider to sell shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various empirical studies have demonstrated the useful potential of this strategy if "monkeys" know what to do (learn more here).
Now, it's important to take a gander at the latest action regarding LogMeIn Inc (NASDAQ:LOGM).
At year's end, a total of 12 of the hedge funds we track were long in this stock, a change of -8% from the previous quarter. With the smart money's capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings significantly.
According to our comprehensive database, Eric Bannasch's Cadian Capital had the most valuable position in LogMeIn Inc (NASDAQ:LOGM), worth close to $69 million, accounting for 2.2% of its total 13F portfolio. Coming in second is D. E. Shaw of D E Shaw, with a $16 million position; 0% of its 13F portfolio is allocated to the company. Some other hedge funds that are bullish include Steven Cohen's SAC Capital Advisors, Joseph A. Jolson's Harvest Capital Strategies and George Soros's Soros Fund Management.
Judging by the fact that LogMeIn Inc (NASDAQ:LOGM) has witnessed declining sentiment from the aggregate hedge fund industry, logic holds that there exists a select few fund managers who sold off their full holdings heading into 2013. Interestingly, Scott Burney's Bluefin Investment Management dumped the largest stake of the "upper crust" of funds we monitor, valued at close to $8 million in stock.. Peter Rathjens, Bruce Clarke and John Campbell's fund, Arrowstreet Capital, also dropped its stock, about $1 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 1 funds heading into 2013.
Insider purchases made by high-level executives is at its handiest when the company in question has seen transactions within the past six months. Over the latest 180-day time period, LogMeIn Inc (NASDAQ:LOGM) has seen 2 unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
With the returns shown by the aforementioned time-tested strategies, retail investors should always monitor hedge fund and insider trading activity, and LogMeIn Inc (NASDAQ:LOGM) applies perfectly to this mantra.
Insider Monkey's small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.