Is Honda Motor Co Ltd (ADR) (HMC) A Good Stock To Buy?

Consequently, some big names have been driving this bullishness. Orbis Investment Management, led by William B. Gray, assembled the most outsized 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 following funds were also among the new HMC investors: 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 check out hedge fund activity in other stocks – not necessarily in the same industry as Honda Motor Co Ltd (ADR) (NYSE:HMC) but similarly valued. 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). This group of stocks’ market caps are similar to HMC’s market cap.

As you can see these stocks had an average of 29 funds with bullish positions and the average amount invested in these stocks was $1.17 billion. That figure was just $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 five 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.

Disclosure: none