Here Is What Hedge Funds Think About Dr. Reddy’s Laboratories Limited (ADR) (RDY)

With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. LMR Partners, led by Ben Levine, Andrew Manuel and Stefan Renold, created the most valuable position in Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY). LMR Partners had $10.3 million invested in the company at the end of the quarter. Gifford Combs’s Dalton Investments also made a $2.4 million investment in the stock during the quarter. The following funds were also among the new RDY investors: Krishen Sud’s Sivik Global Healthcare and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) but similarly valued. These stocks are iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB), Packaging Corp Of America (NYSE:PKG), Torchmark Corporation (NYSE:TMK), and Seattle Genetics, Inc. (NASDAQ:SGEN). This group of stocks’ market caps match RDY’s market cap.

As you can see these stocks had an average of 21.5 hedge funds with bullish positions and the average amount invested in these stocks was $910 million. That figure was $422 million in RDY’s case. iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB) is the most popular stock in this table. On the other hand Torchmark Corporation (NYSE:TMK) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) is even less popular than TMK. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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