New York-based Okumus Fund founded by Ahmet Okumus mainly focuses on value based investing in mid and large-cap equity. The fund maintains a portfolio which consists of 90% long and 15% short positions. In this article we will look at tech stocks which the fund likes.
According to Okumus’ last 13F filing, the fund held an equity portfolio worth $577.73 million at the end of June, with more than half represented by technology stocks. In this article, let’s look at some under-the-radar tech stocks that Ahmet Okumus is betting on, which include Web.com Group Inc (NASDAQ:WEB), Lifelock Inc (NYSE:LOCK), Barracuda Networks Inc (NYSE:CUDA), Bazaarvoice Inc (NASDAQ:BV), and Endurance International Group Hldgs Inc (NASDAQ:EIGI).
We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see more details here).
Web.com Group Inc (NASDAQ:WEB)
– Shares Owned by Okumus Fund (as of June 30): 9.56 million
– Value of Okumus Fund holding (as of June 30): $173.80 million
The first under-the-radar stock in which Okumus Fund Management increased its stake is Web.com Group Inc (NASDAQ:WEB) by 36% during the second quarter and owned 9.56 million shares worth $173.80 million at the end of June. Recently, Web.com Group has opened a digital customer service center in New Glasgow, which will allow it to be eligible for $6.3 million of taxpayers’ money from Nova Scotia’s government if it is able to create employment for 330 people. This is company’s third operation in Nova Scotia. Web.com Group Inc (NASDAQ:WEB)’s stock has lost over 13% since the beginning of the year as the company reported only slightly better-than-expected results for the first quarter and missed on the revenue side in its second-quarter report. Overall, the number of funds from our database long Web.com Group Inc (NASDAQ:WEB) declined to 19 from 25 the second quarter.
Lifelock Inc (NYSE:LOCK)
– Shares Owned by Okumus Fund (as of June 30): 5.36 million
– Value of Okumus Fund holding (as of June 30): $85.43 million
Okumus Fund Management reduced its exposure to Lifelock Inc (NYSE:LOCK) by 41% on the quarter to 5.36 million shares worth $85.43 million. Recently Goldman Sachs initiated coverage on the stock with a ‘Neutral’ rating. Goldman Sachs analyst Gabriela Borges considers that shares of the company have recovered from pre-litigation levels; hence adoption by customers along with M&A could be the next trigger. The stock has surged by more than 18% since the beginning of the year. At the end of June, there were 22 investors tracked by Insider Monkey that held shares of Lifelock Inc (NYSE:LOCK), having amassed nearly 25% of its outstanding stock.
On the next page, we will talk about Barracuda Networks Inc (NYSE:CUDA), Bazaarvoice Inc (NASDAQ:BV), and Endurance International Group Hldgs Inc (NASDAQ:EIGI).