Should You Now Consider Selling Your HDFC Bank (HDB) Shares?

Harding Loevner, an investment management firm, published its “Global Equity Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A net return of 4.35% was recorded by the fund for the fourth quarter of 2021, trailing its Benchmarks, the MSCI All Country World Index, and the MSCI World Index which returned 6.77% and 7.86% respectively for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Harding Loevner Global Equity Fund, in its Q4 2021 investor letter, mentioned HDFC Bank Limited (NYSE: HDB) and discussed its stance on the firm. HDFC Bank Limited is a Mumbai, India-based financial services company with a $111.5 billion market capitalization. HDB delivered a -7.22% return since the beginning of the year, while its 12-month returns are down by -26.83%. The stock closed at $60.37 per share on March 01, 2022.

Here is what Harding Loevner Global Equity Fund has to say about HDFC Bank Limited in its Q4 2021 investor letter:

“In the full year, we suffered negative stock selection in seven of the eleven sectors, including fourth-quarter culprits IT and Health Care, but also within Financials, where a couple of high-quality but economically sensitive EM banks—another way we gear our portfolio to secular growth trends—faltered in the face of their countries’ sluggish climb from their pandemic-induced troughs. HDFC Bank, meanwhile, fell victim to India’s own version of a strong cyclical rally, its share price outshined by lower-quality institutions. Partly offsetting Financials, the Industrials sector was the top contributor for the quarter and the year.”

Research, Investment, Finance

Our calculations show that HDFC Bank Limited (NYSE: HDB) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. HDB was in 38 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 40 funds in the previous quarter. HDFC Bank Limited (NYSE: HDB) delivered a -8.94% return in the past 3 months.

In August 2021, we also shared another hedge fund’s views on HDB in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.