Should You Buy Honda Motor Co Ltd (ADR) (HMC)?

Consequently, specific money managers were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, created the most outsized position in Honda Motor Co Ltd (ADR) (NYSE:HMC). Arrowstreet Capital had $5.8 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also initiated a $0.9 million position during the quarter. The other funds with brand new HMC positions are Peter Muller’s PDT Partners, and Joe DiMenna’s ZWEIG DIMENNA PARTNERS.

Let’s go over hedge fund activity in other stocks similar to Honda Motor Co Ltd (ADR) (NYSE:HMC). These stocks are Ford Motor Company (NYSE:F), BT Group plc (ADR) (NYSE:BT), The Bank of Nova Scotia (USA) (NYSE:BNS), and Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA). This group of stocks’ market caps resemble HMC’s market cap.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $347 million. That figure was just $61 million in HMC’s case. Ford Motor Company (NYSE:F) is the most popular stock in this table. On the other hand Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA) is the least popular one with only 4 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 Ford might be a better candidate to consider a long position.