Osmium Partners Bets Big on Tech and Internet-Related Stocks

A few days ago, John H Lewis Osmium Partners, presented its Form 13F Filing for the first quarter of 2014 at the U.S. Securities and Exchange Commission. Over the three months ending on March 31, the fund started only 2 new stock positions, increased its stakes in 7 of its preexisting holdings, and sold out of 3 stocks. So, let’s take a look at Mr. Lewis’ portfolio for Q1 2014:

The fund’s strong focus on technology stocks continued through the first quarter, with tech stocks accounting for almost half of its portfolio’s value. Its most valuable position –which remained unchanged in rank in relation to the previous quarter, is that in Rosetta Stone Inc (NYSE:RST), a $209 million market cap provider of technology-based language learning solutions. Osmium raised its stake in Rosetta Stone Inc (NYSE:RST) by 14% during the first three months, and now holds 2.2 million shares -worth more than $24 million, which account for roughly 16% of its portfolio. This position makes of Mr. Lewis the second-largest hedge fund shareholder of the company among funds tracked at Insider Monkey, only surpassed by John W. Rogers’ mutual fund, which owns about 3.8 million shares of Rosetta Stone Inc (NYSE:RST), up by 11% in relation to Q4 2013.

Rosetta Stone Inc

The second-runner position, however, changed hands, after the fund slightly boosted its bets on Vitacost.com, Inc. (NASDAQ:VITC) and reduced its exposure to Spark Networks Inc (NYSEMKT:LOV). I should also highlight that Vitacost.com’s stock price surged by more than 22% over the first quarter.

Vitacost.com, Inc. (NASDAQ:VITC) is a $216 million market cap online retailer of health and wellness products. Although it is not strictly a tech stock, this internet retailer does fit in the fund’s tech-and-internet-oriented equity portfolio. Osmium’s 2.75 million shares are worth more than $19 million, and account for approximately 12% of the fund’s portfolio. In this case, Osmium Partners is the hedge fund that holds the largest position in the company, trailed by Chuck Royce’s Royce & Associates, with 2.4 million shares (up by 3%).

I should mention that, after the end of the first quarter, the fund has gone activist on Vitacost.com, Inc. (NASDAQ:VITC), while it continued to trim its stake in the company. After disposing of approximately 250,000 shares, the fund owns 2.5 million shares which account for 7.3% of the total number of shares outstanding. Still, the company has agreed to nominate and appoint an independent director nominated by the fund.

Displaced from its previously held second position, is Spark Networks Inc (NYSEMKT:LOV), a $109 million market cap provider of online personals services, of which the fund owns more than 3.37 million shares, valued at roughly $17 million (about 11% of its portfolio). Once again, Mr. Lewis’ fund is among the largest hedge fund investors of Spark Networks Inc (NYSEMKT:LOV), followed by Thomas Ellis and Todd Hammer’s North Run Capital, which holds 1.85 million shares of the company.

Mr. Lewis’ fourth most valuable holding ascended from the sixth position in the previous quarter. This company is Tucows Inc. (USA) (NASDAQ:TCX) a $154 million market cap provider of internet services such as domain name registration, email and other internet-related services. It sells most of its services through a network of more than 13,000 resellers. During the first quarter, Osmium acquired 23,781 shares of Tucows Inc. (USA) (NASDAQ:TCX), and now holds more than 1 million shares, worth over $13 million, and accounting for 8% of its total equity portfolio.

Disclosure: Javier Hasse holds no position in any stocks mentioned.

 

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!