Is Applied Optoelectronics Inc (AAOI) a Good Stock to Invest in?

Consequently, key money managers have jumped into Applied Optoelectronics Inc (NASDAQ:AAOI) headfirst. Whale Rock Capital Management established the largest position in Applied Optoelectronics Inc (NASDAQ:AAOI). Brandon Osten’s Venator Capital Management also made a $3.2 million investment in the stock during the quarter. The following funds were also among the new AAOI investors: D. E. Shaw’s D E Shaw, Israel Englander’s Millennium Management, and Richard Driehaus’s Driehaus Capital.

Let’s check out hedge fund activity in other stocks similar to Applied Optoelectronics Inc (NASDAQ:AAOI). We will take a look at Arbutus Biopharma Corp (NASDAQ:ABUS), Control4 Corp (NASDAQ:CTRL), Enzymotec Ltd (NASDAQ:ENZY), and Gaiam, Inc. (NASDAQ:GAIA). All of these stocks’ market caps resemble AAOI’s market cap.

As you can see these stocks had an average of eight funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was $75 million in AAOI’s case. Control4 Corp (NASDAQ:CTRL) is the most popular stock in this table, while Gaiam, Inc. (NASDAQ:GAIA) is the least popular one with only four investors holding long positions. Compared to these stocks Applied Optoelectronics Inc (NASDAQ:AAOI) 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.