Social Media Stocks Hedge Funds Like

#2. LinkedIn Corp (NYSE:LNKD)

– Number of Hedge Fund Shareholders (as of June 30): 66

– Total Value of Hedge Funds’ Holdings (as of June 30): $4.06 Billion

There were 66 hedge fund firms from our system with equity investments in LinkedIn Corp (NYSE:LNKD) at the end of the April-to-June quarter, up from 41 firms recorded at the end of the previous quarter. Microsoft Corporation (NASDAQ:MSFT)’s $26.2 billion-offer to acquire the world’s largest professional network on the Internet caught the attention of merger arbitrageurs. In mid-June, the computer giant agreed to acquire control of LinkedIn for $196 per share, so some hedge funds might be attempting to monetize on the difference between LinkedIn’s current share price of slightly under $193 a share and the aforementioned offer price. The multi-billion-dollar deal is anticipated to complete by the end of the current calendar year. Adage Capital Management, founded by Phillip Gross and Robert Atchinson, acquired a new stake of 770,000 shares of LinkedIn Corp (NYSE:LNKD) during the second quarter.

#1. Facebook Inc. (NASDAQ:FB)

– Number of Hedge Fund Shareholders (as of June 30): 148

– Total Value of Hedge Funds’ Holdings (as of June 30): $15.24 Billion

Facebook Inc. (NASDAQ:FB) fell out of favor with the hedge funds followed by Insider Monkey during the three months that ended June quarter, with the number of funds invested in the social network giant falling to 148 from 164 quarter-over-quarter. Nonetheless, the aggregate value of those funds’ stakes in Facebook rose by 5% quarter-on-quarter to $15.24 billion, so some remaining Facebook shareholders upped their exposure to the company quite significantly (the stock was flat in the second quarter). Well-known short-seller Andrew Left of Citron Research believes the social media giant will “become a tremendous short once the engagement numbers slip.” According to Mr. Left, Facebook’s growth story could resemble Apple Inc. (NASDAQ:AAPL)’s story. Put it differently, the short-seller anticipates Facebook to turn into a value play from a growth play just like the iPhone maker. Facebook has seen its market capitalization jump by 20% since the start of the year. Andreas Halvorsen’s Viking Global reported owning 20.14 million shares of Facebook Inc. (NASDAQ:FB) in its 13F for the June quarter.

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