Dorsal Capital Management Placing Bullish Bets On LinkedIn Corp (LNKD)


LinkedIn Corp (NYSE:LNKD) has not been among the favorite stocks for many investors and hedge funds. This was mainly due to the fact that in comparison to other social media stocks like Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR), LinkedIn Corp (NYSE:LNKD) wasn’t performing very well. But, Dorsal Capital, led by Ryan Frick, Jeff Barnett and Youli Petkov is bullish on LinkedIn to grow big in the days to come. Insidermonkey editor, Meena wrote about Dorsal Capital’s liking towards LinkedIn through their 2Q Investor letter in her LinkedIn group.

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 Meena said that Dorsal Capital is a young hedge fund with more than $600 million assets. They returned 5.4% during the first half of 2014 and returned 48.5% since 2009, the year it started its operations. She mentioned that the fund is 15% long and is very close to being a fully hedged fund.

She quoted couple of paragraphs from Dorsal Capital’s 2Q investor letter, which indicated the inclination of the fund towards LinkedIn Corp (NYSE:LNKD).

“[…] we believe there is a lot of stored-up alpha in the book, particularly on the long side where we have taken some profits in long-term winners (e.g. PCLN, FB) and are building some positions in more recent laggards that we think have multiple quarters (if not years) of positive alpha ahead of them (e.g. LNKD),” Meena quoted a paragraph from Dorsal capital 2Q investor letter.

This indicated that the Dorsal Capital is placing its bet on LinkedIn Corp (NYSE:LNKD) to grow in at least the next few quarters.

“[…] We built LNKD back into a bigger position as it had been for us in 2012 and early 2013,” Meena quoted a paragraph from Dorsal capital 2Q investor letter.

She mentioned that LinkedIn Corp (NYSE:LNKD) stock value has increased by 20% since the end of second quarter. So she thinks that the Dorsal Capital’s investment in LinkedIn Corp (NYSE:LNKD) is very timely. She also mentioned that the fund is placing big hopes on LinkedIn to grow big in the future.

 As of 30 June 2014, Dorsal Capital Management hold around 215,000 LinkedIn Corp (NYSE:LNKD) shares.

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