This Metric Says You Are Smart to Buy Tata Motors Limited (ADR) (TTM)

Tata Motors Limited (ADR) (NYSE:TTM) was in 22 hedge funds’ portfolio at the end of the first quarter of 2013. TTM has seen an increase in hedge fund interest of late. There were 19 hedge funds in our database with TTM positions at the end of the previous quarter.

At the moment, there are tons of gauges shareholders can use to track publicly traded companies. Two of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite money managers can outclass the market by a very impressive amount (see just how much).

Just as beneficial, optimistic insider trading sentiment is a second way to break down the world of equities. As the old adage goes: there are many incentives for an insider to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Various empirical studies have demonstrated the market-beating potential of this method if you know what to do (learn more here).

Consequently, we’re going to take a glance at the key action regarding Tata Motors Limited (ADR) (NYSE:TTM).

Hedge fund activity in Tata Motors Limited (ADR) (NYSE:TTM)

At Q1’s end, a total of 22 of the hedge funds we track held long positions in this stock, a change of 16% from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes considerably.

When looking at the hedgies we track, Ken Fisher’s Fisher Asset Management had the largest position in Tata Motors Limited (ADR) (NYSE:TTM), worth close to $157.4 million, accounting for 0.4% of its total 13F portfolio. On Fisher Asset Management’s heels is AQR Capital Management, managed by Cliff Asness, which held a $23.3 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Crispin Odey’s Odey Asset Management Group, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Israel Englander’s Millennium Management.

As one would reasonably expect, specific money managers were breaking ground themselves. Odey Asset Management Group, managed by Crispin Odey, established the most outsized position in Tata Motors Limited (ADR) (NYSE:TTM). Odey Asset Management Group had 22.4 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $7.1 million position during the quarter. The other funds with new positions in the stock are David Costen Haley’s HBK Investments, Matthew Hulsizer’s PEAK6 Capital Management, and Daniel S. Och’s OZ Management.

How have insiders been trading Tata Motors Limited (ADR) (NYSE:TTM)?

Bullish insider trading is particularly usable when the primary stock in question has experienced transactions within the past six months. Over the last half-year time frame, Tata Motors Limited (ADR) (NYSE:TTM) has experienced zero unique insiders buying, 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 Tata Motors Limited (ADR) (NYSE:TTM). These stocks are Honda Motor Co Ltd (ADR) (NYSE:HMC), Ford Motor Company (NYSE:F), Tesla Motors Inc (NASDAQ:TSLA), Nissan Motor Co., Ltd. (ADR) (PINK:NSANY), and General Motors Company (NYSE:GM). This group of stocks are in the auto manufacturers – major industry and their market caps are similar to TTM’s market cap.