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

Consequently, specific money managers were breaking ground themselves. Lee Munder Capital Group, managed by Lee Munder, assembled the biggest position in Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY). Lee Munder Capital Group had $8.1 million invested in the company at the end of the quarter. Robert B. Gillam’s McKinley Capital Management also initiated a $1.4 million position during the quarter. The only other fund with a brand new RDY position is Thomas Bailard’s Bailard Inc.

Let’s now take a look at hedge fund activity in other stocks similar to Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY). We will take a look at ServiceNow Inc (NYSE:NOW), Signet Jewelers Ltd. (NYSE:SIG), Continental Resources, Inc. (NYSE:CLR), and Rockwell Collins, Inc. (NYSE:COL). This group of stocks’ market values match RDY’s market value.

As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $1.10 billion, compared to $538 million in RDY’s case. Signet Jewelers Ltd. (NYSE:SIG) is the most popular stock in this table, while Rockwell Collins, Inc. (NYSE:COL) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) is even less popular than COL. 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.