Would You Dare Invest in Logitech (LOGI)?

VGI Partners, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the twelve months ended 31 December 2021 (CY21), VGI Partners Global Investments Limited (ASX:VG1) generated a net return of -2.5%. VG1’s post-tax Net Tangible Assets (NTA) per share stood at $2.34 as of 31 December 2021. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

VGI Partners, in its Q4 2021 investor letter, mentioned Logitech International S.A. (NASDAQ: LOGI) and discussed its stance on the firm. Logitech International S.A. is a Lausanne, Switzerland-based holding company with a $13.8 billion market capitalization. LOGI delivered a -1.48% return since the beginning of the year, while its 12-month returns are down by -26.03%. The stock closed at $83.39 per share on January 31, 2022.

Here is what VGI Partners has to say about Logitech International S.A. in its Q4 2021 investor letter:

“We did progressively resume single-stock shorting throughout the year in addition to using baskets to avoid the risk of short squeezes. Logitech, the manufacturer of office and gaming equipment, was an example of a successful short for us during 2021. The business was a large beneficiary of stay-at-home orders which drove a demand spike for home office and video communication equipment as most employees shifted to working remotely. This not only drove a pull-forward of growth, but margins also experienced a step-up due to the lack of promotions. The market started to extrapolate these dynamics as a permanent change in Logitech’s economics, whereas we took the opposite view which has proved closer to reality given a string of disappointing results.”

Logitech Circle 2

Our calculations show that Logitech International S.A. (NASDAQ: LOGI) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. LOGI was in 20 hedge fund portfolios at the end of the third quarter of 2021, compared to 20 funds in the previous quarter. Logitech International S.A. (NASDAQ: LOGI) delivered a 1.27% return in the past 3 months.

You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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