Should Strategic Hotels and Resorts Inc (NYSE:BEE) investors track the following data?
To the average investor, there are a multitude of gauges shareholders can use to analyze their holdings. A pair of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can outpace the S&P 500 by a significant amount (see just how much).
Equally as crucial, positive insider trading activity is another way to analyze the world of equities. As the old adage goes: there are lots of motivations for a corporate insider to downsize shares of his or her company, but just one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this method if investors understand where to look (learn more here).
Thus, we’re going to study the newest info for Strategic Hotels and Resorts Inc (NYSE:BEE).
Hedge fund activity in Strategic Hotels and Resorts Inc (NYSE:BEE)
In preparation for the third quarter, a total of 22 of the hedge funds we track were bullish in this stock, a change of 10% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were upping their holdings meaningfully.
According to our 13F database, Daniel Lewis’s Orange Capital had the most valuable position in Strategic Hotels and Resorts Inc (NYSE:BEE), worth close to $67 million, accounting for 7.6% of its total 13F portfolio. On Orange Capital’s heels is Forward Management, managed by J. Alan Reid, Jr., which held a $28.4 million position; the fund has 2.4% of its 13F portfolio invested in the stock. Some other peers that are bullish include John Paulson’s Paulson & Co, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management.
As aggregate interest spiked, certain bigger names were leading the bulls’ herd. Orange Capital, managed by Daniel Lewis, assembled the most valuable position in Strategic Hotels and Resorts Inc (NYSE:BEE). Orange Capital had 67 million invested in the company at the end of the quarter. J. Alan Reid, Jr.’s Forward Management also made a $28.4 million investment in the stock during the quarter. The other funds with new positions in the stock are John Paulson’s Paulson & Co, Ken Griffin’s Citadel Investment Group, and Israel Englander’s Millennium Management.
How have insiders been trading Strategic Hotels and Resorts Inc (NYSE:BEE)?
Legal insider trading, particularly when it’s bullish, is most useful when the primary stock in question has experienced transactions within the past half-year. Over the latest 180-day time period, Strategic Hotels and Resorts Inc (NYSE:BEE) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Strategic Hotels and Resorts Inc (NYSE:BEE). These stocks are Chesapeake Lodging Trust (NYSE:CHSP), LaSalle Hotel Properties (NYSE:LHO), Sunstone Hotel Investors Inc (NYSE:SHO), Pebblebrook Hotel Trust (NYSE:PEB), and DiamondRock Hospitality Company (NYSE:DRH). All of these stocks are in the reit – hotel/motel industry and their market caps match BEE’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Chesapeake Lodging Trust (NYSE:CHSP) | 9 | 0 | 0 |
| LaSalle Hotel Properties (NYSE:LHO) | 7 | 0 | 0 |
| Sunstone Hotel Investors Inc (NYSE:SHO) | 14 | 0 | 0 |
| Pebblebrook Hotel Trust (NYSE:PEB) | 5 | 0 | 0 |
| DiamondRock Hospitality Company (NYSE:DRH) | 13 | 0 | 0 |
Using the returns explained by the previously mentioned strategies, average investors must always pay attention to hedge fund and insider trading sentiment, and Strategic Hotels and Resorts Inc (NYSE:BEE) applies perfectly to this mantra.
