Is Smart Money Losing Interest in Tata Motors Limited (ADR) (TTM)?

As aggregate interest increased, specific money managers were leading the bulls’ herd. Indus Capital, managed by David Kowitz and Sheldon Kasowitz, established a position in Tata Motors Limited (ADR) (NYSE:TTM). Indus Capital had $9.9 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $5.5 million investment in the stock during the quarter. The other funds with new positions in the stock are D. E. Shaw’s D E Shaw, Noam Gottesman’s GLG Partners, and Alexander Roepers’s Atlantic Investment Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Tata Motors Limited (ADR) (NYSE:TTM) but similarly valued. These stocks are Tractor Supply Company (NASDAQ:TSCO), Cheniere Energy, Inc. (NYSEAMEX:LNG), Agilent Technologies Inc. (NYSE:A), and Freescale Semiconductor Ltd (NYSE:FSL). This group of stocks’ market valuations match TTM’s market valuation.

As you can see these stocks had an average of 40 hedge funds with bullish positions and the average amount invested in these stocks was $2284 million. That figure was $431 million in TTM’s case. Cheniere Energy, Inc. (NYSEAMEX:LNG is the most popular stock in this table. On the other hand Freescale Semiconductor Ltd (NYSE:FSL) is the least popular one with only 23 bullish hedge fund positions. In comparison, Tata Motors Limited (ADR) (NYSE:TTM), with 22 bullish hedge fund positions, is even less popular. Even though this is usually not a good sign, it doesn’t necessarily mean it is not a good choice for investment. Investors might not be considering the bullish thesis when they think of this stock as overvalued. In any case, further research and more detailed analyses are required.