Chatham Lodging Trust (CLDT): Hedge Funds Are Bullish and Insiders Are Bearish, What Should You Do?

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Chatham Lodging Trust (NYSE:CLDT) has seen an increase in hedge fund sentiment recently.

To the average investor, there are tons of gauges market participants can use to analyze Mr. Market. A pair of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite hedge fund managers can trounce their index-focused peers by a very impressive margin (see just how much).


Just as integral, optimistic insider trading activity is another way to parse down the stock market universe. Just as you’d expect, there are a variety of reasons for a bullish insider to cut shares of his or her company, but just one, very simple reason why they would buy. Various academic studies have demonstrated the useful potential of this strategy if shareholders understand where to look (learn more here).

Consequently, we’re going to take a peek at the recent action encompassing Chatham Lodging Trust (NYSE:CLDT).

What have hedge funds been doing with Chatham Lodging Trust (NYSE:CLDT)?

At the end of the fourth quarter, a total of 6 of the hedge funds we track held long positions in this stock, a change of 20% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their holdings meaningfully.

When looking at the hedgies we track, J. Alan Reid, Jr.’s Forward Management had the largest position in Chatham Lodging Trust (NYSE:CLDT), worth close to $14.2 million, accounting for 1% of its total 13F portfolio. The second largest stake is held by Martin D. Sass of MD Sass, with a $5 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include D. E. Shaw’s D E Shaw, John Overdeck and David Siegel’s Two Sigma Advisors and Jim Simons’s Renaissance Technologies.

As aggregate interest increased, some big names were breaking ground themselves. Millennium Management, managed by Israel Englander, assembled the most valuable position in Chatham Lodging Trust (NYSE:CLDT). Millennium Management had 0.2 million invested in the company at the end of the quarter.

How are insiders trading Chatham Lodging Trust (NYSE:CLDT)?

Bullish insider trading is at its handiest when the primary stock in question has seen transactions within the past six months. Over the latest 180-day time frame, Chatham Lodging Trust (NYSE:CLDT) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to Chatham Lodging Trust (NYSE:CLDT). These stocks are Strategic Hotels and Resorts Inc (NYSE:BEE), Pebblebrook Hotel Trust (NYSE:PEB), Chesapeake Lodging Trust (NYSE:CHSP), Ashford Hospitality Trust, Inc. (NYSE:AHT), and FelCor Lodging Trust Incorporated (NYSE:FCH). This group of stocks are in the reit – hotel/motel industry and their market caps match CLDT’s market cap.

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