Hedge Funds Are Selling Honda Motor Co Ltd (ADR) (HMC)

Honda Motor Co Ltd (ADR) (NYSE:HMC) was in 9 hedge funds’ portfolio at the end of December. HMC investors should be aware of a decrease in enthusiasm from smart money lately. There were 10 hedge funds in our database with HMC holdings at the end of the previous quarter.

In the financial world, there are a multitude of methods market participants can use to monitor Mr. Market. A couple of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can outpace the broader indices by a superb margin (see just how much).

Just as key, optimistic insider trading sentiment is another way to break down the marketplace. As the old adage goes: there are plenty of reasons for a bullish insider to cut shares of his or her company, but just one, very clear reason why they would buy. Plenty of empirical studies have demonstrated the impressive potential of this tactic if piggybackers understand what to do (learn more here).

With these “truths” under our belt, it’s important to take a gander at the key action regarding Honda Motor Co Ltd (ADR) (NYSE:HMC).

What does the smart money think about Honda Motor Co Ltd (ADR) (NYSE:HMC)?

At year’s end, a total of 9 of the hedge funds we track were bullish in this stock, a change of -10% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes meaningfully.

When looking at the hedgies we track, Renaissance Technologies, managed by Jim Simons, holds the most valuable position in Honda Motor Co Ltd (ADR) (NYSE:HMC). Renaissance Technologies has a $9.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is Ken Heebner of Capital Growth Management, with a $6.6 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Robert B. Gillam’s McKinley Capital Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Dmitry Balyasny’s Balyasny Asset Management.

Due to the fact that Honda Motor Co Ltd (ADR) (NYSE:HMC) has faced declining sentiment from the smart money, it’s easy to see that there was a specific group of fund managers that slashed their entire stakes last quarter. At the top of the heap, Israel Englander’s Millennium Management sold off the biggest stake of the 450+ funds we key on, worth an estimated $1.7 million in stock.. David Costen Haley’s fund, HBK Investments, also sold off its stock, about $1.2 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 1 funds last quarter.

How are insiders trading Honda Motor Co Ltd (ADR) (NYSE:HMC)?

Bullish insider trading is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the latest 180-day time frame, Honda Motor Co Ltd (ADR) (NYSE:HMC) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Honda Motor Co Ltd (ADR) (NYSE:HMC). These stocks are Tata Motors Limited (ADR) (NYSE:TTM), Toyota Motor Corporation (ADR) (NYSE:TM), General Motors Company (NYSE:GM), Nissan Motor Co., Ltd. (ADR) (PINK:NSANY), and Ford Motor Company (NYSE:F). This group of stocks are the members of the auto manufacturers – major industry and their market caps are similar to HMC’s market cap.