Hedge Funds Are Betting On Honda Motor Co Ltd (ADR) (HMC)

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As aggregate interest increased, key hedge funds have jumped into Honda Motor Co Ltd (ADR) (NYSE:HMC) headfirst. Orbis Investment Management, led by William B. Gray, initiated the most valuable position in Honda Motor Co Ltd (ADR) (NYSE:HMC). Orbis Investment Management had $14.8 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $12.1 million position during the quarter. The other funds with brand new HMC positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners, and Ken Griffin’s Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks similar to Honda Motor Co Ltd (ADR) (NYSE:HMC). These stocks are Caterpillar Inc. (NYSE:CAT), Kinder Morgan Inc (NYSE:KMI), Banco Santander (Brasil) SA (ADR) (NYSE:BSBR), and Lloyds Banking Group PLC (ADR) (NYSE:LYG). All of these stocks’ market caps match HMC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CAT 32 1460921 1
KMI 68 2836616 15
BSBR 5 47432 5
LYG 11 334783 1

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1170 million. That figure was $150 million in HMC’s case. Kinder Morgan Inc (NYSE:KMI) is the most popular stock in this table. On the other hand Banco Santander (Brasil) SA (ADR) (NYSE:BSBR) is the least popular one with only 5 bullish hedge fund positions. Honda Motor Co Ltd (ADR) (NYSE:HMC) 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 KMI might be a better candidate to consider taking a long position in.

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Disclosure: None




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