Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) was in 12 hedge funds’ portfolio at the end of the first quarter of 2013. RDY has experienced an increase in activity from the world’s largest hedge funds lately. There were 10 hedge funds in our database with RDY positions at the end of the previous quarter.
To the average investor, there are a multitude of gauges investors can use to monitor their holdings. Some of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can outperform their index-focused peers by a superb margin (see just how much).
Equally as beneficial, optimistic insider trading activity is another way to break down the stock market universe. Obviously, there are lots of stimuli for an upper level exec to downsize shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various empirical studies have demonstrated the market-beating potential of this strategy if shareholders know where to look (learn more here).
Now, let’s take a peek at the key action encompassing Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY).
How have hedgies been trading Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY)?
At Q1’s end, a total of 12 of the hedge funds we track held long positions in this stock, a change of 20% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their stakes significantly.
According to our comprehensive database, Ken Fisher’s Fisher Asset Management had the biggest position in Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY), worth close to $28 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Jerome Pfund and Michael Sjostrom of Sectoral Asset Management, with a $14.3 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Cliff Asness’s AQR Capital Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Israel Englander’s Millennium Management.
With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, assembled the biggest position in Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY). Arrowstreet Capital had 3.7 million invested in the company at the end of the quarter. Barton Biggs’s Traxis Partners also initiated a $0.9 million position during the quarter. The other funds with new positions in the stock are Matthew Hulsizer’s PEAK6 Capital Management, Matthew Tewksbury’s Stevens Capital Management, and Robert B. Gillam’s McKinley Capital Management.
What have insiders been doing with Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY)?
Insider buying is at its handiest when the company in focus has seen transactions within the past 180 days. Over the latest half-year time frame, Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY). These stocks are Cubist Pharmaceuticals Inc (NASDAQ:CBST), United Therapeutics Corporation (NASDAQ:UTHR), Warner Chilcott Plc (NASDAQ:WCRX), Endo Health Solutions Inc (NASDAQ:ENDP), and Pharmacyclics, Inc. (NASDAQ:PCYC). This group of stocks belong to the drug manufacturers – other industry and their market caps are similar to RDY’s market cap.