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LogMeIn Inc (LOGM): Are Hedge Funds Right About This Stock?

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Hedge funds run by legendary names like Nelson Peltz and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant out-performance. These stocks have been on a tear since the end of June, outperforming large-cap index funds by more than 10 percentage points. That’s why we pay special attention to hedge fund activity in these stocks.

LogMeIn Inc (NASDAQ:LOGM) has experienced an increase in hedge fund interest of late. LOGM was in 27 hedge funds’ portfolios at the end of September. There were 21 hedge funds in our database with LOGM holdings at the end of the previous quarter. At the end of this article we will also compare LOGM to other stocks including Kemper Corporation (NYSE:KMPR), Radius Health Inc (NASDAQ:RDUS), and Enerplus Corp (USA) (NYSE:ERF) to get a better sense of its popularity.

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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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Keeping this in mind, let’s take a look at the key action encompassing LogMeIn Inc (NASDAQ:LOGM).

How are hedge funds trading LogMeIn Inc (NASDAQ:LOGM)?

Heading into the fourth quarter of 2016, a total of 27 of the hedge funds tracked by Insider Monkey held long positions in this stock, a rise of 29% from the second quarter of 2016. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were boosting their stakes considerably (or already accumulated large positions).

HedgeFundSentimentChart

Of the funds tracked by Insider Monkey, Renaissance Technologies, managed by Jim Simons, holds the number one position in LogMeIn Inc (NASDAQ:LOGM). Renaissance Technologies has a $87.3 million position in the stock. Coming in second is Light Street Capital, managed by Glen Kacher, which holds a $70.5 million position; 7.1% of its 13F portfolio is allocated to the company. Other members of the smart money that hold long positions contain Edmond M. Safra’s EMS Capital, Principal Global Investors’s Columbus Circle Investors and Ken Griffin’s Citadel Investment Group.

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