Chesapeake Lodging Trust (NYSE:CHSP) was in 7 hedge funds’ portfolio at the end of March. CHSP shareholders have witnessed an increase in enthusiasm from smart money in recent months. There were 6 hedge funds in our database with CHSP positions at the end of the previous quarter.
In the 21st century investor’s toolkit, there are a multitude of indicators investors can use to monitor Mr. Market. A duo of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can outpace the broader indices by a superb margin (see just how much).
Just as important, bullish insider trading activity is another way to break down the financial markets. As the old adage goes: there are a variety of stimuli for a bullish insider to drop shares of his or her company, but only one, very obvious reason why they would buy. Various academic studies have demonstrated the impressive potential of this tactic if investors understand where to look (learn more here).
With these “truths” under our belt, it’s important to take a gander at the key action surrounding Chesapeake Lodging Trust (NYSE:CHSP).
What have hedge funds been doing with Chesapeake Lodging Trust (NYSE:CHSP)?
Heading into Q2, a total of 7 of the hedge funds we track held long positions in this stock, a change of 17% from the first quarter. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings meaningfully.
According to our comprehensive database, Capital Growth Management, managed by Ken Heebner, holds the largest position in Chesapeake Lodging Trust (NYSE:CHSP). Capital Growth Management has a $40.2 million position in the stock, comprising 1% of its 13F portfolio. The second largest stake is held by Cliff Asness of AQR Capital Management, with a $9 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include D. E. Shaw’s D E Shaw, Abby Flamholz and Yehuda Blinder’s ADAR Investment Management and John Overdeck and David Siegel’s Two Sigma Advisors.
As one would reasonably expect, key money managers have been driving this bullishness. ADAR Investment Management, managed by Abby Flamholz and Yehuda Blinder, created the most valuable position in Chesapeake Lodging Trust (NYSE:CHSP). ADAR Investment Management had 6.1 million invested in the company at the end of the quarter.
How are insiders trading Chesapeake Lodging Trust (NYSE:CHSP)?
Bullish insider trading is particularly usable when the company in question has experienced transactions within the past 180 days. Over the last six-month time frame, Chesapeake Lodging Trust (NYSE:CHSP) has experienced zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Chesapeake Lodging Trust (NYSE:CHSP). These stocks are DiamondRock Hospitality Company (NYSE:DRH), Strategic Hotels and Resorts Inc (NYSE:BEE), FelCor Lodging Trust Incorporated (NYSE:FCH), Pebblebrook Hotel Trust (NYSE:PEB), and Ashford Hospitality Trust, Inc. (NYSE:AHT). This group of stocks belong to the reit – hotel/motel industry and their market caps resemble CHSP’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| DiamondRock Hospitality Company (NYSE:DRH) | 15 | 0 | 0 |
| Strategic Hotels and Resorts Inc (NYSE:BEE) | 20 | 0 | 0 |
| FelCor Lodging Trust Incorporated (NYSE:FCH) | 15 | 5 | 0 |
| Pebblebrook Hotel Trust (NYSE:PEB) | 5 | 0 | 0 |
| Ashford Hospitality Trust, Inc. (NYSE:AHT) | 16 | 0 | 0 |
With the returns exhibited by our strategies, retail investors must always monitor hedge fund and insider trading activity, and Chesapeake Lodging Trust (NYSE:CHSP) applies perfectly to this mantra.
