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Parag Vora’s HG Vora Capital is Bullish on REITs

Parag Vora‘s HG Vora Capital Management is bullish on Ashford Hospitality Trust, Inc. (NYSE:AHT) and on Ashford Inc. (NYSEMKT:AINC). In two new filings with the Securities and Exchange Commission, HG Vora reported raising its position in Ashford Hospitality to 4.50 million shares, from 3.50 million shares held earlier and initiating a position in Ashford Inc., which amasses 160,000 shares of the company. In this way, the fund currently owns a passive stake that amasses 5% of Ashford Hospitality Trust’s common stock and an activist stake in Ashford, which represents 8.1% of the company’s common stock.

Parag Vora - HG Vora Capital

Ashford Inc. (NYSEMKT:AINC) is a company that went public on November 10 being spun-off from Ashford Hospitality Trust, Inc. (NYSE:AHT). The stock gained the attention of investors as its price went up by 150% since the IPO. Following the spin-off the shareholders received one share of Ashford for each 87 shares of Ashford Hospitality Trust. Ashford is an asset management company that is focused on managing real estate, hospitality and securities platforms. Ashford Hospitality Trust is a real estate investment trust that is investing in the hospitality industry.

HG Vora is a new fund that has filed its first 13F filing for the last quarter of 2013. It has been holding shares of Ashford Hospitality Trust, Inc. (NYSE:AHT) since the first quarter, its initial stake amassing around 1.35 million shares of the company. During the first quarter, the stake has been increased by more than a threefold, but during the second and third quarters, the position has been slightly decreased. Meanwhile, the stock of Ashford Hospitality appreciated by around 25% year-to-date.

Moreover, while HG Vora is the largest shareholder of Ashford Hospitality Trust, Inc. (NYSE:AHT) among the funds that we track, other funds also have a bullish sentiment on the REIT. Cliff Asness’ AQR Capital Management raised its position by 44% during the third quarter to 2.71 million shares. Jim Simons’ Renaissance Technologies raised its exposure by 46% during the same period to 2.36 million shares.

HG Vora is an activist fund with an equity portfolio of $880 million. The fund has recently raised its position and went activist on Town Sports International Holdings, Inc. (NASDAQ:CLUB), of which it now owns 3.88 million shares, versus 3.30 million shares. The largest position is represented by American Realty Capital Properties Inc (NASDAQ:ARCP), of which the fund owns 12.35 million shares, followed by Pinnacle Entertainment, Inc (NYSE:PNK) with 7.7 million shares.

Overall, HG Vora is betting on Real Estate Investment Trust since these stocks provide stable returns in forms of dividends. We have seen investors becoming more active around these stocks. Yesterday, Ken Griffin‘s Citadel Investment Group reported raising its position in Silver Bay Realty Trust Corp (NYSE:SBY) to 1.88 million shares, from 1.71 million shares. In addition David S. Winter and David J. Millstone‘s 40 North Management increased stake in Columbia Property Trust Inc (NYSE:CXP) to 8.14 million shares, from 4.01 million shares held earlier.

Disclosure: none

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