Here is What Hedge Funds Think About HDFC Bank Limited (ADR) (HDB)

As one would reasonably expect, some big names were breaking ground themselves. Emerging Sovereign Group, managed by J Kevin Kenny Jr, initiated the biggest position in HDFC Bank Limited (ADR) (NYSE:HDB). Emerging Sovereign Group had $5.2 million invested in the company at the end of the quarter. Charles Anderson’s Fox Point Capital Management also initiated a $3.1 million position during the quarter. The other funds with new positions in the stock are Peter Muller’s PDT Partners and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks similar to HDFC Bank Limited (ADR) (NYSE:HDB). We will take a look at The Dow Chemical Company (NYSE:DOW), Thermo Fisher Scientific Inc. (NYSE:TMO), Baidu.com, Inc. (ADR) (NASDAQ:BIDU), and Regeneron Pharmaceuticals Inc (NASDAQ:REGN). All of these stocks’ market caps resemble HDB’s market cap.

As you can see these stocks had an average of 48 hedge funds with bullish positions and the average amount invested in these stocks was $3470 million. That figure was $1333 million in HDB’s case. The Dow Chemical Company (NYSE:DOW) is the most popular stock in this table. On the other hand Regeneron Pharmaceuticals Inc (NASDAQ:REGN) is the least popular one with only 32 bullish hedge fund positions. Compared to these stocks HDFC Bank Limited (ADR) (NYSE:HDB) is even less popular than REGN. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.