Tiger Management founder Julian Robertson (Trades, Portfolio) established a holding in Ooma Inc. (OOMA, Financial) on June 21, according to GuruFocus real-time picks.
Robertson founded his hedge fund in 1980 but closed it to outside investors in 2000. His investment philosophy involves using a long-short strategy. According to GuruFocus, the current portfolio of 56 stocks is valued at $530 million.
Robertson purchased 1.23 million shares of Ooma for an average price of $8.25 per share, giving it 1.8% portfolio space.
The California-based telecommunications company has a market cap of $146.2 million; its shares were trading around $8 on Monday with a price-book (P/B) ratio of 3.6 and a price-sales (P/S) ratio of 1.3.
The Peter Lynch chart below shows the stock is trading slightly below its fair value.
GuruFocus ranked the company’s financial strength 8 of 10 and its profitability and growth 5 of 10.
On May 27, the company posted a $3.4 million net loss in its fiscal first-quarter 2018 report, an improvement from a $4 million loss in the comparable quarter of fiscal 2017. Its revenue increased 13% year-over-year to $27.6 million.
With his purchase of 6.7% of the company’s outstanding shares, Robertson became Ooma’s largest guru shareholder. Jim Simons (Trades, Portfolio) and Chuck Royce (Trades, Portfolio) also own the stock.
Technology stocks have the largest portfolio weight at 40.9%. His top five technology holdings are Facebook Inc. (FB, Financial), Alphabet Inc. (GOOG, Financial), Microsoft Corp. (MSFT, Financial), Adobe Systems Inc. (ADBE, Financial) and CommScope Holding Co. Inc. (COMM, Financial).
Disclosure: I do not own any stocks mentioned in the article.
