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.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ABUS 11 88877 -2
CTRL 12 39487 2
ENZY 6 38488 0
GAIA 4 14338 -2

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.