Ambarella Inc (AMBA) Tanking After Citron Research Report; Buy Or Steer Clear?

How have hedge funds been trading Ambarella Inc (NASDAQ:AMBA)?

The total value of hedge funds’ investment in Ambarella was increased to $188.43 million by the end of the first quarter of 2015 from just $87.92 million at the end of 2014. The stock was up by about 45% during this time, which accounts for some of the gains, but there was still a significant increase in capital even aside from the gains, to go along with the aforementioned increase in total hedge fund ownership in the stock to 23 funds from 17.

Of the hedge funds we track at Insider Monkey, Philippe Laffont’s Coatue Management holds the number one position in Ambarella Inc (NASDAQ:AMBA), worth $72.5 million, which makes up 0.7% of its 13F portfolio. Eminence Capital managed by Ricky Sandler has the second-biggest stake in AMBA, worth $37.9 million, comprising 0.6% of its total 13F portfolio. Ken Griffin’s Citadel Investment Group, Richard Driehaus’ Driehaus Capital, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital are some of the other notable hedge funds which are bullish on AMBA.

The effect of Citron Research was very detrimental for Ambarella Inc (NASDAQ:AMBA)’s stock, but ultimately it’s just one opinion, and there are many others. A lot of smart money is very bullish on the chip maker right now, and nothing significant has effected the company that should sway that. With Ambarella already rebounding by over 8% today, the chance to catch the rebound may have been missed, but if it dips again, we would recommend a buy.

Disclosure: None