LogMeIn Inc (NASDAQ:LOGM) was in 12 hedge funds' portfolio at the end of the fourth quarter of 2012. LOGM has experienced a decrease in enthusiasm from smart money recently. There were 13 hedge funds in our database with LOGM positions at the end of the previous quarter.
If you'd ask most market participants, hedge funds are perceived as worthless, outdated financial vehicles of years past. While there are over 8000 funds trading today, we choose to focus on the crème de la crème of this club, around 450 funds. Most estimates calculate that this group controls the lion's share of the hedge fund industry's total asset base, and by paying attention to their highest performing picks, we have formulated a few investment strategies that have historically outperformed the S&P 500 index. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we've started sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 24 percentage points in 7 months (see all of our picks from August).
Equally as integral, bullish insider trading activity is another way to parse down the investments you're interested in. Obviously, there are a number of stimuli for an upper level exec to drop shares of his or her company, but only one, very clear reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this method if "monkeys" know where to look (learn more here).
Now, let's take a peek at the latest action regarding LogMeIn Inc (NASDAQ:LOGM).
Heading into 2013, a total of 12 of the hedge funds we track held long positions in this stock, a change of -8% from the previous quarter. With the smart money's positions undergoing their usual ebb and flow, there exists an "upper tier" of key hedge fund managers who were upping their holdings meaningfully.
When looking at the hedgies we track, Eric Bannasch's Cadian Capital had the largest position in LogMeIn Inc (NASDAQ:LOGM), worth close to $68.9 million, comprising 2.2% of its total 13F portfolio. Sitting at the No. 2 spot is D E Shaw, managed by D. E. Shaw, which held a $15.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Steven Cohen's SAC Capital Advisors, Joseph A. Jolson's Harvest Capital Strategies and George Soros's Soros Fund Management.
Seeing as LogMeIn Inc (NASDAQ:LOGM) has experienced falling interest from the entirety of the hedge funds we track, logic holds that there exists a select few hedgies that elected to cut their positions entirely heading into 2013. It's worth mentioning that Scott Burney's Bluefin Investment Management said goodbye to the largest investment of all the hedgies we watch, totaling an estimated $7.7 million in stock., and Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital was right behind this move, as the fund cut about $0.7 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 1 funds heading into 2013.
Bullish insider trading is best served when the company in focus has experienced transactions within the past half-year. 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).
Let's check out hedge fund and insider activity in other stocks similar to LogMeIn Inc (NASDAQ:LOGM). These stocks are NQ Mobile Inc (ADR) (NYSE:NQ), Incontact Inc (NASDAQ:SAAS), AutoNavi Holdings Ltd (ADR) (NASDAQ:AMAP), Responsys Inc (NASDAQ:MKTG), and E2open Inc (NASDAQ:EOPN). This group of stocks are the members of the application software industry and their market caps resemble LOGM's market cap.