What should a Sunstone Hotel Investors Inc (NYSE:SHO) investor do?
In the financial world, there are tons of metrics shareholders can use to monitor the equity markets. Some of the most innovative 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 elite hedge fund managers can beat their index-focused peers by a very impressive amount (see just how much).
Equally as key, optimistic insider trading sentiment is a second way to look at the marketplace. There are a variety of incentives for an executive to sell shares of his or her company, but just one, very obvious reason why they would buy. Several academic studies have demonstrated the valuable potential of this strategy if shareholders know where to look (learn more here).
Keeping this in mind, we’re going to discuss the recent info surrounding Sunstone Hotel Investors Inc (NYSE:SHO).
How are hedge funds trading Sunstone Hotel Investors Inc (NYSE:SHO)?
In preparation for the third quarter, a total of 14 of the hedge funds we track were bullish in this stock, a change of 8% from the first quarter. With hedgies’ sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their stakes considerably.
Out of the hedge funds we follow, Ken Heebner’s Capital Growth Management had the largest position in Sunstone Hotel Investors Inc (NYSE:SHO), worth close to $60 million, comprising 1.6% of its total 13F portfolio. Sitting at the No. 2 spot is Forward Management, managed by J. Alan Reid, Jr., which held a $19.1 million position; the fund has 1.6% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include Glenn Fuhrman and John Phelan’s MSD Capital, John Overdeck and David Siegel’s Two Sigma Advisors and Ken Griffin’s Citadel Investment Group.
As one would understandably expect, particular hedge funds were breaking ground themselves. Capital Growth Management, managed by Ken Heebner, established the biggest position in Sunstone Hotel Investors Inc (NYSE:SHO). Capital Growth Management had 60 million invested in the company at the end of the quarter. J. Alan Reid, Jr.’s Forward Management also initiated a $19.1 million position during the quarter. The following funds were also among the new SHO investors: Glenn Fuhrman and John Phelan’s MSD Capital, John Overdeck and David Siegel’s Two Sigma Advisors, and Ken Griffin’s Citadel Investment Group.
How have insiders been trading Sunstone Hotel Investors Inc (NYSE:SHO)?
Bullish insider trading is most useful when the company in question has experienced transactions within the past six months. Over the last 180-day time period, Sunstone Hotel Investors Inc (NYSE:SHO) has seen zero unique insiders purchasing, 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 Sunstone Hotel Investors Inc (NYSE:SHO). These stocks are RLJ Lodging Trust (NYSE:RLJ), LaSalle Hotel Properties (NYSE:LHO), Pebblebrook Hotel Trust (NYSE:PEB), Strategic Hotels and Resorts Inc (NYSE:BEE), and DiamondRock Hospitality Company (NYSE:DRH). This group of stocks are the members of the reit – hotel/motel industry and their market caps resemble SHO’s market cap.