Hospitality Properties Trust (NYSE:HPT) shareholders have witnessed a decrease in hedge fund interest in recent months.
To the average investor, there are dozens of gauges investors can use to analyze Mr. Market. Two of the most underrated are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best money managers can outperform their index-focused peers by a solid margin (see just how much).
Equally as beneficial, optimistic insider trading sentiment is a second way to break down the world of equities. There are a variety of stimuli for an upper level exec to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the market-beating potential of this strategy if piggybackers understand where to look (learn more here).
With these “truths” under our belt, let’s take a gander at the latest action encompassing Hospitality Properties Trust (NYSE:HPT).
How have hedgies been trading Hospitality Properties Trust (NYSE:HPT)?
At Q1’s end, a total of 9 of the hedge funds we track held long positions in this stock, a change of -18% from the previous quarter. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their stakes substantially.
According to our comprehensive database, Pzena Investment Management, managed by Richard S. Pzena, holds the biggest position in Hospitality Properties Trust (NYSE:HPT). Pzena Investment Management has a $49.8 million position in the stock, comprising 0.3% of its 13F portfolio. Sitting at the No. 2 spot is Forward Management, managed by J. Alan Reid, Jr., which held a $46.6 million position; 2.9% of its 13F portfolio is allocated to the company. Remaining hedge funds that are bullish include David Dreman’s Dreman Value Management, Cliff Asness’s AQR Capital Management and Brian Taylor’s Pine River Capital Management.
Judging by the fact that Hospitality Properties Trust (NYSE:HPT) has witnessed falling interest from hedge fund managers, it’s easy to see that there is a sect of funds that slashed their positions entirely heading into Q2. Intriguingly, Israel Englander’s Millennium Management said goodbye to the biggest investment of all the hedgies we monitor, valued at an estimated $4.1 million in stock., and D. E. Shaw of D E Shaw was right behind this move, as the fund said goodbye to about $1.4 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds heading into Q2.
Insider trading activity in Hospitality Properties Trust (NYSE:HPT)
Insider purchases made by high-level executives is at its handiest when the company in focus has experienced transactions within the past 180 days. Over the last half-year time frame, Hospitality Properties Trust (NYSE:HPT) has seen 1 unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Hospitality Properties Trust (NYSE:HPT). These stocks are Taubman Centers, Inc. (NYSE:TCO), Regency Centers Corp (NYSE:REG), Tanger Factory Outlet Centers Inc. (NYSE:SKT), Weingarten Realty Investors (NYSE:WRI), and CBL & Associates Properties, Inc. (NYSE:CBL). This group of stocks belong to the reit – retail industry and their market caps resemble HPT’s market cap.