Is Varonis Systems Inc (VRNS) Worthy of Your Portfolio?

As industrywide interest jumped, key hedge funds were breaking ground themselves. Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, created the most valuable position in Varonis Systems Inc (NASDAQ:VRNS). Arrowstreet Capital had $6 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $1 million position during the third quarter. The other funds with new positions in the stock are Peter Algert and Kevin Coldiron’s Algert Coldiron Investors, Cliff Asness’ AQR Capital Management, and Glenn Russell Dubin’s Highbridge Capital Management.

Let’s check out hedge fund activity in other stocks similar to Varonis Systems Inc (NASDAQ:VRNS). These stocks are Leju Holdings Ltd (ADR) (NYSE:LEJU), TriCo Bancshares (NASDAQ:TCBK), Viad Corp (NYSE:VVI), and MakeMyTrip Limited (NASDAQ:MMYT). This group of stocks’ market values resemble VRNS’s market value.

As you can see these stocks had an average of nine investors holding long positions and the average amount invested in these stocks was $79 million. That figure was $77 million in VRNS’s case. Viad Corp (NYSE:VVI) is the most popular stock in this table, while Leju Holdings Ltd (ADR) (NYSE:LEJU) is the least popular one with only four bullish hedge fund positions. Compared to these stocks Varonis Systems Inc (NASDAQ:VRNS) 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.