Does Xenia Hotels & Resorts Inc (XHR) Represent a Good Investment Right Now?

Now, key hedge funds were leading the bulls’ herd. Balyasny Asset Management, led by Dmitry Balyasny, created the most valuable position in Xenia Hotels & Resorts Inc (NYSE:XHR). Balyasny Asset Management had $5.5 million invested in the company at the end of the quarter. Steve Pei’s Gratia Capital also made a $3.5 million investment in the stock during the quarter. The other funds with brand new XHR positions are Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group, and David Costen Haley’s HBK Investments.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Xenia Hotels & Resorts Inc (NYSE:XHR) but similarly valued. These stocks are Stamps.com Inc. (NASDAQ:STMP), Descartes Systems Group (USA) (NASDAQ:DSGX), Corrections Corp Of America (NYSE:CXW), and World Wrestling Entertainment, Inc. (NYSE:WWE). This group of stocks’ market values match XHR’s market value.

As you can see these stocks had an average of 19 funds with bullish positions and the average amount invested in these stocks was $192 million. That figure was $78 million in XHR’s case. Stamps.com Inc. (NASDAQ:STMP) is the most popular stock in this table. On the other hand Descartes Systems Group (USA) (NASDAQ:DSGX) is the least popular one with only four funds holding shares. Xenia Hotels & Resorts Inc (NYSE:XHR) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Stamps.com Inc. (NASDAQ:STMP) might be a better candidate to consider taking a long position in.

Disclosure: none