Is Pebblebrook Hotel Trust (PEB) A Good Stock To Buy?

Seeing as Pebblebrook Hotel Trust (NYSE:PEB) has faced no change in sentiment from the aggregate hedge fund industry, we must look if there are any funds that sold off their positions entirely by the end of the third quarter. Interestingly, J. Alan Reid, Jr.’s Forward Management dropped the largest investment of the “upper crust” of funds tracked by Insider Monkey, valued at close to $24.6 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dropped its stock, about $4 million worth of PEB shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Pebblebrook Hotel Trust (NYSE:PEB) but similarly valued. These stocks are Texas Pacific Land Trust (NYSE:TPL), MicroStrategy Incorporated (NASDAQ:MSTR), Deckers Outdoor Corp (NASDAQ:DECK), and Fortress Investment Group LLC (NYSE:FIG). This group of stocks’ market values match PEB’s market value.

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 $273 million. That figure was $14 million in PEB’s case. MicroStrategy Incorporated (NASDAQ:MSTR) is the most popular stock in this table. On the other hand Texas Pacific Land Trust (NYSE:TPL) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Pebblebrook Hotel Trust (NYSE:PEB) is even less popular than TPL. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none.