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Is Logitech International SA (LOGI) Going to Burn These Hedge Funds?

The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Logitech International SA (NASDAQ:LOGI).

Logitech International SA (NASDAQ:LOGI) was in 14 hedge funds’ portfolios at the end of September. LOGI investors should be aware of a decrease in support from the world’s most elite money managers of late. There were 16 hedge funds in our database with LOGI positions at the end of the previous quarter. Our calculations also showed that LOGI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video below for Q2 rankings).
5 Most Popular Stocks Among Hedge Funds
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

To the average investor there are numerous gauges shareholders put to use to evaluate stocks. A pair of the less utilized gauges are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the top picks of the elite fund managers can trounce the broader indices by a significant amount (see the details here).

Dmitry Balyasny of Balyasny Asset Managemnet

Dmitry Balyasny of Balyasny Asset Managemnet

We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world’s largest cannabis market, so we check out this European marijuana stock pitch. One of the most bullish analysts in America just put his money where his mouth is. He says, “I’m investing more today than I did back in early 2009.” So we check out his pitch. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We also rely on the best performing hedge funds‘ buy/sell signals. Let’s take a gander at the recent hedge fund action encompassing Logitech International SA (NASDAQ:LOGI).

What have hedge funds been doing with Logitech International SA (NASDAQ:LOGI)?

At Q3’s end, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -13% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in LOGI over the last 17 quarters. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).

More specifically, Renaissance Technologies was the largest shareholder of Logitech International SA (NASDAQ:LOGI), with a stake worth $97.8 million reported as of the end of September. Trailing Renaissance Technologies was Two Sigma Advisors, which amassed a stake valued at $39.7 million. Arrowstreet Capital, Marshall Wace, and Balyasny Asset Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position PDT Partners allocated the biggest weight to Logitech International SA (NASDAQ:LOGI), around 0.33% of its 13F portfolio. Marshall Wace is also relatively very bullish on the stock, earmarking 0.2 percent of its 13F equity portfolio to LOGI.

Seeing as Logitech International SA (NASDAQ:LOGI) has experienced falling interest from the entirety of the hedge funds we track, it’s easy to see that there were a few hedgies who sold off their positions entirely last quarter. Interestingly, Minhua Zhang’s Weld Capital Management cut the largest investment of the 750 funds tracked by Insider Monkey, valued at close to $0.6 million in stock, and Noam Gottesman’s GLG Partners was right behind this move, as the fund dropped about $0.4 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 2 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Logitech International SA (NASDAQ:LOGI) but similarly valued. We will take a look at CAE, Inc. (NYSE:CAE), SL Green Realty Corp (NYSE:SLG), LPL Financial Holdings Inc (NASDAQ:LPLA), and LATAM Airlines Group S.A. (NYSE:LTM). This group of stocks’ market caps resemble LOGI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CAE 11 145277 1
SLG 24 440534 9
LPLA 34 1015258 3
LTM 9 28716 4
Average 19.5 407446 4.25

View table here if you experience formatting issues.

As you can see these stocks had an average of 19.5 hedge funds with bullish positions and the average amount invested in these stocks was $407 million. That figure was $213 million in LOGI’s case. LPL Financial Holdings Inc (NASDAQ:LPLA) is the most popular stock in this table. On the other hand LATAM Airlines Group S.A. (NYSE:LTM) is the least popular one with only 9 bullish hedge fund positions. Logitech International SA (NASDAQ:LOGI) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 20 most popular stocks among hedge funds returned 37.4% in 2019 through the end of November and outperformed the S&P 500 ETF (SPY) by 9.9 percentage points. A small number of hedge funds were also right about betting on LOGI, though not to the same extent, as the stock returned 6.9% during the first two months of the fourth quarter and outperformed the market.

Disclosure: None. This article was originally published at Insider Monkey.

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