Is Applied Micro Circuits Corporation (AMCC) Worthy of Your Portfolio?

As one would reasonably expect, key hedge funds have jumped into Applied Micro Circuits Corporation (NASDAQ:AMCC) headfirst. Peter Muller’s PDT Partners assembled the largest position in Applied Micro Circuits Corporation (NASDAQ:AMCC). PDT Partners had $0.5 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $0.3 million position during the quarter. The only other fund with a brand new AMCC position is Cliff Asness’ AQR Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Applied Micro Circuits Corporation (NASDAQ:AMCC). We will take a look at Quanex Building Products Corporation (NYSE:NX), Galapagos NV (ADR) (NASDAQ:GLPG), William Lyon Homes (NYSE:WLH), and Clean Energy Fuels Corp (NASDAQ:CLNE). This group of stocks’ market caps are similar to AMCC’s market cap.

As you can see these stocks had an average of 14 investors with bullish positions and the average amount invested in these stocks was $136 million. That figure was $95 million in AMCC’s case. William Lyon Homes (NYSE:WLH) is the most popular stock in this table with 17 funds holding shares. On the other hand Clean Energy Fuels Corp (NASDAQ:CLNE) is the least popular one with only 11 bullish hedge fund positions. Applied Micro Circuits Corporation (NASDAQ:AMCC) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard William Lyon Homes (NYSE:WLH) might be a better candidate to consider taking a long position in.

Disclosure: None