In This Article:
Before we spend days researching a stock idea we'd like to take a look at how hedge funds and billionaire investors recently traded that stock. S&P 500 Index ETF (SPY) lost 13.5% in the fourth quarter. Seven out of 11 industry groups in the S&P 500 Index were down more than 20% from their 52-week highs at the trough of the stock market crash. The average return of a randomly picked stock in the index was even worse. This means you (or a monkey throwing a dart) have less than an even chance of beating the market by randomly picking a stock. On the other hand, the top 15 most popular S&P 500 stocks among hedge funds not only recouped their Q4 losses but also outperformed the index by more than 3 percentage points. In this article, we will take a look at what hedge funds think about Dr. Reddy's Laboratories Limited (NYSE:RDY).
Dr. Reddy's Laboratories Limited (NYSE:RDY) investors should be aware of an increase in enthusiasm from smart money lately. Our calculations also showed that RDY isn't among the 30 most popular stocks among hedge funds.
In the financial world there are plenty of methods shareholders have at their disposal to size up publicly traded companies. Two of the most underrated methods are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the best money managers can outclass the broader indices by a significant amount (see the details here).
We're going to view the fresh hedge fund action surrounding Dr. Reddy's Laboratories Limited (NYSE:RDY).
What does the smart money think about Dr. Reddy's Laboratories Limited (NYSE:RDY)?
At Q4's end, a total of 10 of the hedge funds tracked by Insider Monkey were long this stock, a change of 11% from one quarter earlier. By comparison, 9 hedge funds held shares or bullish call options in RDY a year ago. With hedge funds' sentiment swirling, there exists an "upper tier" of key hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
According to Insider Monkey's hedge fund database, Jim Simons's Renaissance Technologies has the biggest position in Dr. Reddy's Laboratories Limited (NYSE:RDY), worth close to $38.3 million, accounting for less than 0.1%% of its total 13F portfolio. On Renaissance Technologies's heels is AQR Capital Management, led by Cliff Asness, holding a $20.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other professional money managers that hold long positions consist of D. E. Shaw's D E Shaw, Gifford Combs's Dalton Investments and Noam Gottesman's GLG Partners.