At the moment, there are plenty of metrics investors can use to track publicly traded companies. Some of the most underrated are hedge fund and insider trading sentiment. 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 superb margin (see just how much).
Just as crucial, bullish insider trading activity is another way to analyze the investments you're interested in. Obviously, there are a variety of motivations for a corporate insider to drop shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Many academic studies have demonstrated the useful potential of this method if you know where to look (learn more here).
Keeping this in mind, it's important to analyze the latest info for 7 DAYS GROUP HOLDINGS LIMITED(ADR) (NYSE:SVN).
In preparation for the third quarter, a total of 6 of the hedge funds we track were bullish in this stock, a change of -40% from the previous quarter. With hedge funds' positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings considerably.
According to our 13F database, D E Shaw, managed by D. E. Shaw, holds the biggest position in 7 DAYS GROUP HOLDINGS LIMITED(ADR) (NYSE:SVN). D E Shaw has a $10 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, managed by Jim Simons, which held a $7.4 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other hedgies that are bullish include Spencer M. Waxman's Shannon River Fund Management, Andrew J. M. Spokes's Farallon Capital and John Overdeck and David Siegel's Two Sigma Advisors.
Since 7 DAYS GROUP HOLDINGS LIMITED(ADR) (NYSE:SVN) has experienced declining interest from the entirety of the hedge funds we track, we can see that there lies a certain "tier" of funds that elected to cut their positions entirely last quarter. At the top of the heap, Brett Barakett's Tremblant Capital dropped the biggest stake of the "upper crust" of funds we watch, totaling close to $11.2 million in stock, and James Dinan of York Capital Management was right behind this move, as the fund said goodbye to about $5.4 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 4 funds last quarter.
Legal insider trading, particularly when it's bullish, is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the last 180-day time frame, 7 DAYS GROUP HOLDINGS LIMITED(ADR) (NYSE:SVN) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also examine the relationship between both of these indicators in other stocks similar to 7 DAYS GROUP HOLDINGS LIMITED(ADR) (NYSE:SVN). These stocks are Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP), Morgans Hotel Group Co. (NASDAQ:MHGC), Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN), Orient-Express Hotels Ltd. (NYSE:OEH), and China Lodging Group, Ltd (ADR) (NASDAQ:HTHT). This group of stocks are the members of the lodging industry and their market caps are similar to SVN's market cap.