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
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

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!