This LinkedIn Corp (LNKD) Data Will Have You Buying More Stock!

This LinkedIn Corp (NYSE:LNKD) data is promising.


In the eyes of many market players, hedge funds are viewed as useless, outdated investment tools of a forgotten age. Although there are more than 8,000 hedge funds in operation in present day, this site focuses on the moguls of this group, about 525 funds. Analysts calculate that this group controls the lion's share of all hedge funds' total assets, and by monitoring their best picks, we've identified a number of investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we've started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (find the details here).


Equally as crucial, bullish insider trading activity is another way to analyze the world of equities. Just as you'd expect, there are a number of incentives for a bullish insider to sell shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the useful potential of this method if you understand what to do (learn more here).


Keeping this in mind, we're going to study the latest info surrounding LinkedIn Corp (NYSE:LNKD).


LinkedIn Corp (NYSE:LNKD)

How have hedgies been trading LinkedIn Corp (NYSE:LNKD)?


In preparation for the third quarter, a total of 45 of the hedge funds we track were bullish in this stock, a change of 13% from the first quarter. With the smart money's positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their stakes significantly.


According to our 13F database, JAT Capital Management, managed by John Thaler, holds the most valuable position in LinkedIn Corp (NYSE:LNKD). JAT Capital Management has a $182.7 million position in the stock, comprising 7.3% of its 13F portfolio. Sitting at the No. 2 spot is Coatue Management, managed by Philippe Laffont, which held a $171.7 million position; the fund has 1.9% of its 13F portfolio invested in the stock. Remaining hedgies that are bullish include Paul Ruddock and Steve Heinz's Lansdowne Partners, Donald Chiboucis's Columbus Circle Investors and Jim Simons's Renaissance Technologies.


Consequently, certain bigger names were breaking ground themselves. JAT Capital Management, managed by John Thaler, created the most valuable position in LinkedIn Corp (NYSE:LNKD). JAT Capital Management had 182.7 million invested in the company at the end of the quarter. Philippe Laffont's Coatue Management also initiated a $171.7 million position during the quarter. The other funds with new positions in the stock are Paul Ruddockáand Steve Heinz's Lansdowne Partners, Donald Chiboucis's Columbus Circle Investors, and Jim Simons's Renaissance Technologies.

Insider trading activity in LinkedIn Corp (NYSE:LNKD)


Insider buying is at its handiest when the company in focus has seen transactions within the past half-year. Over the last 180-day time period, LinkedIn Corp (NYSE:LNKD) has experienced zero unique insiders purchasing, and 13 insider sales (see the details of insider trades here).


We'll check out the relationship between both of these indicators in other stocks similar to LinkedIn Corp (NYSE:LNKD). These stocks are Akamai Technologies, Inc. (NASDAQ:AKAM), Tripadvisor Inc (NASDAQ:TRIP), Yandex NV (NASDAQ:YNDX), Baidu.com, Inc. (ADR) (NASDAQ:BIDU), and Yahoo! Inc. (NASDAQ:YHOO). This group of stocks are the members of the internet information providers industry and their market caps are similar to LNKD's market cap.
<!--nextpage-->

Company Name
# of Hedge Funds
# of Insiders Buying
# of Insiders Selling

Akamai Technologies, Inc. (NASDAQ:AKAM)
24
1
7

Tripadvisor Inc (NASDAQ:TRIP)
42
0
0

Yandex NV (NASDAQ:YNDX)
19
0
0

Baidu.com, Inc. (ADR) (NASDAQ:BIDU)
34
0
0

Yahoo! Inc. (NASDAQ:YHOO)
66
0
3

Using the returns shown by the previously mentioned studies, regular investors should always track hedge fund and insider trading activity, and LinkedIn Corp (NYSE:LNKD) is an important part of this process.


Discover how hedge fund piggybacking can benefit you

Sign Up

Get the InvestingChannel
Free e-Letter Today

Learn More

Independent market opinion, analysis and ideas - delivered every business day

Premium market opinions, analysis, and ideas - delivered every business day

Editor's Picks