Here is What Hedge Funds Think About Limelight Networks, Inc. (LLNW)

A whopping number of 13F filings filed with the U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Limelight Networks, Inc. (NASDAQ:LLNW).

Is Limelight Networks, Inc. (NASDAQ:LLNW) the right pick for your portfolio? Investors who are in the know are turning bullish. The number of bullish hedge fund positions inched up by 1 lately. LLNW was in 12 hedge funds’ portfolios at the end of September. There were 11 hedge funds in our database with LLNW positions at the end of the previous quarter. At the end of this article we will also compare LLNW to other stocks, including The Phoenix Companies, Inc. (NYSE:PNX), Transenterix Inc (NYSEMKT:TRXC), and POZEN Inc. (NASDAQ:POZN) to get a better sense of its popularity.

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In the financial world, there are a large number of metrics shareholders put to use to analyze their stock investments. A couple of the most underrated metrics are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the top money managers can beat the broader indices by a healthy margin (see the details here).

Now, let’s take a glance at the key action encompassing Limelight Networks, Inc. (NASDAQ:LLNW).

What does the smart money think about Limelight Networks, Inc. (NASDAQ:LLNW)?

At the end of the third quarter, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a change of 9% from the second quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Chuck Royce’s Royce & Associates has the largest position in Limelight Networks, Inc. (NASDAQ:LLNW), worth close to $3.5 million, corresponding to less than 0.1%% of its total 13F portfolio. The second most bullish fund is Renaissance Technologies, with a $3.5 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other members of the smart money that are bullish comprise D. E. Shaw’s D E Shaw, Israel Englander’s Millennium Management and Ken Griffin’s Citadel Investment Group.

Consequently, some big names were breaking ground themselves. AQR Capital Management, managed by Cliff Asness, created the most valuable position in Limelight Networks, Inc. (NASDAQ:LLNW). AQR Capital Management had $0.7 million invested in the company at the end of the quarter. Jim Tarantino and Chris Galvin’s Westerly Capital Management also initiated a $0.4 million position during the quarter. The other funds with brand new LLNW positions are Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and Dmitry Balyasny’s Balyasny Asset Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Limelight Networks, Inc. (NASDAQ:LLNW) but similarly valued. These stocks are The Phoenix Companies, Inc. (NYSE:PNX), Transenterix Inc (NYSEMKT:TRXC), POZEN Inc. (NASDAQ:POZN), and TransGlobe Energy Corporation (USA) (NASDAQ:TGA). This group of stocks’ market values match LLNW’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PNX 5 18416 0
TRXC 10 50201 -3
POZN 18 55185 3
TGA 5 2789 -2

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $32 million. That figure was $12 million in LLNW’s case. POZEN Inc. (NASDAQ:POZN) is the most popular stock in this table. On the other hand The Phoenix Companies, Inc. (NYSE:PNX) is the least popular one with only 5 bullish hedge fund positions. Limelight Networks, Inc. (NASDAQ:LLNW) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard POZN might be a better candidate to consider a long position.