Should You Avoid LogMeIn Inc (LOGM)?

Page 1 of 2

Is LogMeIn Inc (NASDAQ:LOGM) a good investment?

In the eyes of many investors, hedge funds are assumed to be overrated, outdated investment vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds in operation in present day, this site aim at the leaders of this group, close to 525 funds. It is assumed that this group has its hands on the majority of the hedge fund industry’s total assets, and by watching their highest performing stock picks, we’ve revealed a number of investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a 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 outperformed the S&P 500 index by 33 percentage points in 11 months (find the details here).

Just as crucial, optimistic insider trading activity is a second way to analyze the financial markets. There are a variety of motivations for a bullish insider to cut shares of his or her company, but just one, very obvious reason why they would buy. Many empirical studies have demonstrated the impressive potential of this tactic if shareholders understand where to look (learn more here).

Keeping this in mind, it’s important to study the recent info about LogMeIn Inc (NASDAQ:LOGM).

What have hedge funds been doing with LogMeIn Inc (NASDAQ:LOGM)?

In preparation for the third quarter, a total of 10 of the hedge funds we track held long positions in this stock, a change of -17% 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 substantially.

LogMeIn Inc (NASDAQ:LOGM)When using filings from the hedgies we track, Cadian Capital, managed by Eric Bannasch, holds the most valuable position in LogMeIn Inc (NASDAQ:LOGM). Cadian Capital has a $90.1 million position in the stock, comprising 2.8% of its 13F portfolio. Sitting at the No. 2 spot is Steven Cohen of SAC Capital Advisors, with a $44.6 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining hedge funds that hold long positions include D. E. Shaw’s D E Shaw, Ryan Frick and Oliver Evans’s Dorsal Capital Management and Christopher Zepf and Brian Thonn’s Kingdom Ridge Capital.

Because LogMeIn Inc (NASDAQ:LOGM) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few fund managers that slashed their full holdings in Q1. It’s worth mentioning that Josh Resnick’s Jericho Capital Asset Management cut the largest investment of the “upper crust” of funds we track, totaling an estimated $13.4 million in stock. Joseph A. Jolson’s fund, Harvest Capital Strategies, also dumped its stock, about $4 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 2 funds in Q1.

What have insiders been doing with LogMeIn Inc (NASDAQ:LOGM)?

Insider buying is at its handiest when the company we’re looking at has experienced transactions within the past six months. Over the last 180-day time frame, LogMeIn Inc (NASDAQ:LOGM) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators 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 in the application software industry and their market caps resemble LOGM’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!