Is Arista Networks Inc (ANET) A Good Stock To Buy?

Now, key money managers were breaking ground themselves. Tiger Global Management LLC, managed by Chase Coleman, assembled the most outsized position in Arista Networks Inc (NYSE:ANET). Tiger Global Management LLC had $24.5 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also made a $4.7 million investment in the stock during the quarter. The other funds with brand new ANET positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Jim Simons’s Renaissance Technologies, and Joel Greenblatt’s Gotham Asset Management.

Let’s also examine hedge fund activity in other stocks similar to Arista Networks Inc (NYSE:ANET). We will take a look at Columbia Sportswear Company (NASDAQ:COLM), Diamondback Energy Inc (NASDAQ:FANG), Teradata Corporation (NYSE:TDC), and Weingarten Realty Investors (NYSE:WRI). All of these stocks’ market caps are similar to ANET’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $426 million. That figure was $236 million in ANET’s case. Diamondback Energy Inc (NASDAQ:FANG) is the most popular stock in this table. On the other hand Weingarten Realty Investors (NYSE:WRI) is the least popular one with only 13 bullish hedge fund positions. Arista Networks Inc (NYSE:ANET) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FANG might be a better candidate to consider a long position.