NTT Docomo Inc (ADR) (NYSE:DCM): What Should You Do With The Stock?

NTT Docomo Inc (ADR) (NYSE:DCM) was in 5 hedge funds’ portfolio at the end of December. DCM investors should be aware of a decrease in enthusiasm from smart money recently. There were 9 hedge funds in our database with DCM positions at the end of the previous quarter.

At the moment, there are tons of methods investors can use to track publicly traded companies. A pair of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite hedge fund managers can trounce the S&P 500 by a very impressive amount (see just how much).

Equally as important, bullish insider trading activity is a second way to parse down the investments you’re interested in. As the old adage goes: there are plenty of motivations for an insider to cut shares of his or her company, but just one, very obvious reason why they would buy. Various empirical studies have demonstrated the valuable potential of this tactic if shareholders know what to do (learn more here).

Now, let’s take a gander at the key action surrounding NTT Docomo Inc (ADR) (NYSE:DCM).

How are hedge funds trading NTT Docomo Inc (ADR) (NYSE:DCM)?

Heading into 2013, a total of 5 of the hedge funds we track held long positions in this stock, a change of -44% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings meaningfully.

When looking at the hedgies we track, Jim Simons’s Renaissance Technologies had the biggest position in NTT Docomo Inc (ADR) (NYSE:DCM), worth close to $37.7 million, accounting for 0.1% of its total 13F portfolio. On Renaissance Technologies’s heels is Ken Fisher of Fisher Asset Management, with a $3.2 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other peers that are bullish include John Overdeck and David Siegel’s Two Sigma Advisors, Ken Griffin’s Citadel Investment Group and Joel Greenblatt’s Gotham Asset Management.

Because NTT Docomo Inc (ADR) (NYSE:DCM) has witnessed falling interest from the entirety of the hedge funds we track, we can see that there is a sect of money managers that decided to sell off their positions entirely last quarter. Interestingly, Israel Englander’s Millennium Management cut the largest stake of the 450+ funds we monitor, totaling about $2.4 million in stock.. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also cut its stock, about $1.8 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 4 funds last quarter.

What do corporate executives and insiders think about NTT Docomo Inc (ADR) (NYSE:DCM)?

Insider purchases made by high-level executives is most useful when the company we’re looking at has seen transactions within the past six months. Over the latest half-year time frame, NTT Docomo Inc (ADR) (NYSE:DCM) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to NTT Docomo Inc (ADR) (NYSE:DCM). These stocks are France Telecom SA (ADR) (NYSE:FTE), BT Group plc (ADR) (NYSE:BT), China Telecom Corporation Limited (ADR) (NYSE:CHA), Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT), and Telefonica S.A. (ADR) (NYSE:TEF). This group of stocks are in the telecom services – foreign industry and their market caps are similar to DCM’s market cap.