Hedge Funds Are Crazy About Chatham Lodging Trust (CLDT)

As one would reasonably expect, key hedge funds have been driving this bullishness. Balyasny Asset Management, led by Dmitry Balyasny, created the biggest position in Chatham Lodging Trust (NYSE:CLDT). Balyasny Asset Management had $2.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.7 million position during the quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Chatham Lodging Trust (NYSE:CLDT) but similarly valued. We will take a look at WL Ross Holding Corp (NASDAQ:NXEO), TIER REIT Inc (NYSE:TIER), Virtusa Corporation (NASDAQ:VRTU), and CEVA, Inc. (NASDAQ:CEVA). This group of stocks’ market valuations resemble CLDT’s market valuation.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $94 million. That figure was $106 million in CLDT’s case. WL Ross Holding Corp (NASDAQ:NXEO) is the most popular stock in this table. On the other hand Virtusa Corporation (NASDAQ:VRTU) is the least popular one with only 7 bullish hedge fund positions. Chatham Lodging Trust (NYSE:CLDT) 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 NXEO might be a better candidate to consider taking a long position in.

Disclosure: none