InterContinental Hotels Group PLC (ADR) (IHG): Are Hedge Funds Right About This Stock?

Page 1 of 2

InterContinental Hotels Group PLC (ADR) (NYSE:IHG) investors should pay attention to a decrease in enthusiasm from smart money lately.

InterContinental Hotels Group PLC (ADR)If you’d ask most traders, hedge funds are assumed to be underperforming, old investment tools of yesteryear. While there are over 8000 funds with their doors open at present, we at Insider Monkey hone in on the elite of this club, about 450 funds. Most estimates calculate that this group controls most of the smart money’s total capital, and by tracking their highest performing stock picks, we have found a number of investment strategies that have historically outperformed Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 23.3 percentage points in 8 months (see all of our picks from August).

Equally as beneficial, bullish insider trading activity is another way to break down the financial markets. There are plenty of incentives for a corporate insider to sell shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Several empirical studies have demonstrated the market-beating potential of this tactic if “monkeys” know what to do (learn more here).

Keeping this in mind, let’s take a peek at the key action surrounding InterContinental Hotels Group PLC (ADR) (NYSE:IHG).

How have hedgies been trading InterContinental Hotels Group PLC (ADR) (NYSE:IHG)?

At Q1′s end, a total of 10 of the hedge funds we track were long in this stock, a change of -29% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes significantly.

Of the funds we track, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the largest position in InterContinental Hotels Group PLC (ADR) (NYSE:IHG). Arrowstreet Capital has a $14.3 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $11.6 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining hedgies with similar optimism include Claes Fornell’s CSat Investment Advisory, Greg Poole’s Echo Street Capital Management and D. E. Shaw’s D E Shaw.

Because InterContinental Hotels Group PLC (ADR) (NYSE:IHG) has witnessed declining sentiment from the aggregate hedge fund industry, it’s easy to see that there is a sect of hedgies who were dropping their entire stakes heading into Q2. Interestingly, Jeff Lignelli’s Incline Global Management cut the biggest investment of the “upper crust” of funds we monitor, totaling about $3.5 million in stock., and Eric Semler of TCS Capital Management was right behind this move, as the fund said goodbye to about $1.7 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 4 funds heading into Q2.

Insider trading activity in InterContinental Hotels Group PLC (ADR) (NYSE:IHG)

Insider buying is at its handiest when the company we’re looking at has seen transactions within the past six months. Over the last half-year time period, InterContinental Hotels Group PLC (ADR) (NYSE:IHG) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to InterContinental Hotels Group PLC (ADR) (NYSE:IHG). These stocks are Marriott International Inc (NYSE:MAR), Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT), Hyatt Hotels Corporation (NYSE:H), Wyndham Worldwide Corporation (NYSE:WYN), and Expedia Inc (NASDAQ:EXPE). This group of stocks belong to the lodging industry and their market caps resemble IHG’s market cap.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!