Lanexa Global Management, headed by ‘Tiger Cub’ Ian P. Murray, recently submitted its 13F for the reporting period of June 30, 2015, revealing that it has a public equity portfolio valued at $52.99 million in the process, up from $52.89 million at the end of the first quarter. The fund mainly invests in technology stocks, which represented 82% of its portfolio at the end of the second quarter. The fund was founded by Murray, a former protege of Julian Robertson of Tiger Management, one of the many such proteges who has moved on from that firm to found their own firms, often with seed money from Robertson himself. Murray’s firm was registered on May 5, 2006. In this article, we focus on the top three tech picks of the fund going into the third quarter, namely, Inovalon Holdings Inc (NASDAQ:INOV), Google Inc (NASDAQ:GOOGL), and Qlik Technologies Inc (NASDAQ:QLIK).
Let’s first take a step back and analyze how tracking hedge funds can help an everyday investor. Through our research we discovered that a portfolio of the 15 most popular small-cap picks of hedge funds beat the S&P 500 Total Return Index by nearly a percentage point per month on average between 1999 and 2012. On the other hand the most popular large-cap picks of hedge funds underperformed the same index by seven basis points per month during the same period. This is likely a surprise to many investors, who think of small-caps as risky, unpredictable stocks and put more faith (and money) in large-cap stocks. In forward tests since August 2012 these top small-cap stocks beat the market by an impressive 66.5 percentage points, returning over 123% (read the details here). Follow the smart money into only their best investment ideas all while avoiding their high fees.
With that in mind, let’s have a look at Inovalon Holdings Inc (NASDAQ:INOV), which emerged as the top of Lanexa Global Management’s tech picks going into the third quarter. According to the fund’s 13F, it held a total of 150,004 shares of this company, which have a market value of $4.19 million. This is after the fund raised its stake in the stock by 322% during the second quarter. The company just announced a partnership with technology company Hewlett-Packard Company (NYSE:HPQ) for the provision of analytics to the healthcare industry, to improve the healthcare quality in the State of Georgia Department of Community Health’s (DCH) Medicaid and PeachCare for Kids (R) programs. In terms of the stock’s performance, it has lost 10.52% year-to-date. Looking into our database, we see that a total of 11 hedge funds out of the more than 700 that we track were invested in Inovalon Holdings Inc (NASDAQ:INOV) going into the second quarter, with an aggregate investment of $61.65 million. A few of the funds that held stakes in the stock going into the quarter were Citadel Investment Group, headed by Ken Griffin, with 139,615 shares valued at $4.22 million, and Clearbridge Investments, which held 5,600 shares valued at $169,000.