Is Ambarella Inc (AMBA) A Good Stock To Buy?

As one would reasonably expect, specific money managers were leading the bulls’ herd. Gotham Asset Management, managed by Joel Greenblatt, initiated the biggest position in Ambarella Inc (NASDAQ:AMBA). Gotham Asset Management had $22.3 million invested in the company at the end of the quarter. John Lykouretzos’s Hoplite Capital Management also initiated an $18.7 million position during the quarter. The following funds were also among the new AMBA investors: Jim Simons’ Renaissance Technologies, Christopher Lord’s Criterion Capital, and Israel Englander’s Millennium Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Ambarella Inc (NASDAQ:AMBA) but similarly valued. These stocks are Guess?, Inc. (NYSE:GES), Diplomat Pharmacy Inc (NYSE:DPLO), Watts Water Technologies Inc (NYSE:WTS), and Five Below Inc (NASDAQ:FIVE). This group of stocks’ market caps are similar to AMBA’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $176 million, below the $324 million figure in AMBA’s case. Guess?, Inc. (NYSE:GES) is the most popular stock in this table. On the other hand Five Below Inc (NASDAQ:FIVE) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks, Ambarella Inc (NASDAQ:AMBA) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.