Is Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) the right pick for your portfolio? Prominent investors are in a bearish mood. The number of long hedge fund positions stayed the same which is a slightly negative development in our experience
To the average investor, there are plenty of indicators shareholders can use to monitor stocks. Two of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite fund managers can outclass their index-focused peers by a significant margin (see just how much).
Equally as beneficial, optimistic insider trading activity is a second way to break down the world of equities. Just as you’d expect, there are a variety of reasons for a corporate insider to sell shares of his or her company, but only one, very simple reason why they would behave bullishly. Plenty of empirical studies have demonstrated the impressive potential of this tactic if “monkeys” know where to look (learn more here).
Consequently, let’s take a peek at the key action surrounding Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY).
Hedge fund activity in Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY)
In preparation for this year, a total of 10 of the hedge funds we track held long positions in this stock, a change of 0% from the third quarter. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their holdings meaningfully.
According to our comprehensive database, Fisher Asset Management, managed by Ken Fisher, holds the biggest position in Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY). Fisher Asset Management has a $22 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Sectoral Asset Management, managed by Jerome Pfund and Michael Sjostrom, which held a $15 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Remaining peers that hold long positions include Cliff Asness’s AQR Capital Management, D. E. Shaw’s D E Shaw and Israel Englander’s Millennium Management.
Since Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) has experienced falling interest from the smart money, it’s safe to say that there was a specific group of money managers that elected to cut their entire stakes at the end of the year. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital sold off the biggest position of the “upper crust” of funds we track, totaling an estimated $6 million in stock.. David Costen Haley’s fund, HBK Investments, also dumped its stock, about $0 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What do corporate executives and insiders think about Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY)?
Insider purchases made by high-level executives is particularly usable when the company in focus has seen transactions within the past 180 days. Over the last six-month time period, Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review 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 closest to RDY’s market cap.