Is Chesapeake Lodging Trust (CHSP) Going to Burn These Hedge Funds?

Seeing as Chesapeake Lodging Trust (NYSE:CHSP) has experienced a decline in interest from the aggregate hedge fund industry, we can see that there lies a certain “tier” of hedge funds that decided to sell off their positions entirely heading into Q4. It’s worth mentioning that Paul Orlin and Alex Porter’s Amici Capital sold off the biggest stake of all the hedgies tracked by Insider Monkey, totaling about $3.4 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund sold off about $1.7 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Chesapeake Lodging Trust (NYSE:CHSP) but similarly valued. We will take a look at Monogram Residential Trust Inc (NYSE:MORE), CommVault Systems, Inc. (NASDAQ:CVLT), Chambers Street Properties (NYSE:CSG), and Sanderson Farms, Inc. (NASDAQ:SAFM). All of these stocks’ market caps match CHSP’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $190 million. That figure was just $27 million in CHSP’s case. CommVault Systems, Inc. (NASDAQ:CVLT) is the most popular stock in this table. On the other hand Monogram Residential Trust Inc (NYSE:MORE) is the least popular one with only 7 bullish hedge fund positions. Chesapeake Lodging Trust (NYSE:CHSP) 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 CVLT might be a better candidate to consider a long position.