Is HDFC Bank Limited (ADR) (HDB) A Good Stock To Buy?

Due to the fact that HDFC Bank Limited (ADR) (NYSE:HDB) has witnessed unchanged interest from the smart money, we will take a look at a specific group of hedge funds who were dropping their positions entirely in the third quarter. Interestingly, John Armitage’s Egerton Capital Limited sold off the largest position of the 700 funds watched by Insider Monkey, comprising an estimated $135.6 million in stock, and John Brennan’s Sirios Capital Management was right behind this move, as the fund said goodbye to about $11.4 million worth of HDB shares. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as HDFC Bank Limited (ADR) (NYSE:HDB) but similarly valued. These stocks are BT Group plc (ADR) (NYSE:BT), Statoil ASA (ADR) (NYSE:STO), ConocoPhillips (NYSE:COP), and salesforce.com, inc. (NYSE:CRM). This group of stocks’ market valuations match HDB’s market valuation.

As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $916 million. That figure was $1.44 billion in HDB’s case. salesforce.com, inc. (NYSE:CRM) is the most popular stock in this table. On the other hand BT Group plc (ADR) (NYSE:BT) is the least popular one with only 7 bullish hedge fund positions. HDFC Bank Limited (ADR) (NYSE:HDB) 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 CRM might be a better candidate to consider a long position.

Suggested Articles:
Countries With The Highest Migration Rates
Biggest Logistics Companies In the World
Best Paying Medical Jobs With Least Education

Disclosure: None