Is Ellie Mae Inc (ELLI) A Good Stock To Buy?

Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow over 700 of the best-performing investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Ellie Mae Inc (NYSE:ELLI), so let’s take a closer look at the sentiment that surrounds it in the current quarter.

Ellie Mae Inc (NYSE:ELLI) shareholders have witnessed an increase in activity from the world’s largest hedge funds lately. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as Kythera Biopharmaceuticals Inc (NASDAQ:KYTH), Masimo Corporation (NASDAQ:MASI), and Kinross Gold Corporation (USA) (NYSE:KGC) to gather more data points.

Today, there are numerous tools stock market investors have at their disposal to analyze stocks. A duo of the most useful tools are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the top picks of the elite investment managers can outpace their index-focused peers by a very impressive amount (see the details here).

Keeping this in mind, we’re going to take a look at the key action encompassing Ellie Mae Inc (NYSE:ELLI).

Hedge fund activity in Ellie Mae Inc (NYSE:ELLI)

At the end of September, a total of 27 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 23% from one quarter earlier. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Alex Sacerdote’s Whale Rock Capital Management has the most valuable position in Ellie Mae Inc (NYSE:ELLI), worth close to $80.9 million, amounting to 8% of its total 13F portfolio. The second most bullish fund manager is Tremblant Capital, managed by Brett Barakett, which holds a $51 million position; the fund has 3.3% of its 13F portfolio invested in the stock. Some other members of the smart money that are bullish include Edmond M. Safra’s EMS Capital, Spencer M. Waxman’s Shannon River Fund Management, and Richard Driehaus’s Driehaus Capital.