It was a rough third quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 7% during the quarter. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by about 14 percentage points between June 25 and October 30, as investors fled less-known quantities for safe havens. This was the case with hedge funds, who we heard were pulling money from the market amid the volatility, which included money from small-cap stocks, which they invest in at a higher rate than other investors. This action contributed to the greater decline in these stocks during the tumultuous period. We will study how this market volatility affected their sentiment towards Tata Motors Limited (ADR) (NYSE:TTM) during the quarter below.
Tata Motors Limited (ADR) (NYSE:TTM) was in 22 hedge funds’ portfolios at the end of the third quarter of 2015. TTM has seen an increase in hedge fund interest recently. There were 20 hedge funds in our database with TTM holdings at the end of the previous quarter. At the end of this article we will also compare TTM to other stocks including Tractor Supply Company (NASDAQ:TSCO), Cheniere Energy, Inc. (NYSEAMEX:LNG), and Agilent Technologies Inc. (NYSE:A) to get a better sense of its popularity.
In today’s marketplace, there are many methods investors have at their disposal to value publicly traded companies. Two of the most underrated methods are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the best picks of the elite money managers can trounce the broader indices by a significant margin (see the details here).
With all of this in mind, let’s take a glance at the fresh action regarding Tata Motors Limited (ADR) (NYSE:TTM).
Hedge fund activity in Tata Motors Limited (ADR) (NYSE:TTM)
At Q3’s end, a total of 22 of the hedge funds tracked by Insider Monkey were long this stock, a change of 10% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Ken Fisher’s Fisher Asset Management has the number one position in Tata Motors Limited (ADR) (NYSE:TTM), worth close to $182.8 million, accounting for 0.4% of its total 13F portfolio. The second most bullish fund manager is AQR Capital Management, managed by Cliff Asness, which holds an $103.7 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining hedge funds and institutional investors that are bullish include Simon Sadler’s Segantii Capital, Daniel S. Och’s OZ Management and Israel Englander’s Millennium Management.