Is LaSalle Hotel Properties (NYSE:LHO) a good investment?
In today’s marketplace, there are tons of methods market participants can use to track stocks. Some of the best are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outperform the S&P 500 by a significant margin (see just how much).
Equally as crucial, positive insider trading sentiment is a second way to analyze the financial markets. As the old adage goes: there are plenty of motivations for an executive to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Several academic studies have demonstrated the valuable potential of this method if piggybackers understand what to do (learn more here).
Keeping this in mind, let’s examine the latest info about LaSalle Hotel Properties (NYSE:LHO).
Hedge fund activity in LaSalle Hotel Properties (NYSE:LHO)
In preparation for the third quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of -13% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes significantly.
According to our 13F database, Chuck Royce’s Royce & Associates had the biggest position in LaSalle Hotel Properties (NYSE:LHO), worth close to $20.1 million, accounting for 0.1% of its total 13F portfolio. The second largest stake is held by Matthew Tewksbury of Stevens Capital Management, with a $3 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Ken Griffin’s Citadel Investment Group, Cliff Asness’s AQR Capital Management and Ken Gray and Steve Walsh’s Bryn Mawr Capital.
Judging by the fact that LaSalle Hotel Properties (NYSE:LHO) has experienced a fall in interest from upper-tier hedge fund managers, it’s safe to say that there was a specific group of money managers that slashed their positions entirely in Q1. At the top of the heap, John Overdeck and David Siegel’s Two Sigma Advisors said goodbye to the biggest investment of all the hedgies we watch, valued at an estimated $14.4 million in stock, and Israel Englander of Millennium Management was right behind this move, as the fund dropped about $2.5 million worth. These transactions are important to note, as total hedge fund interest fell by 1 funds in Q1.
How are insiders trading LaSalle Hotel Properties (NYSE:LHO)?
Bullish insider trading is at its handiest when the company in question has seen transactions within the past half-year. Over the latest 180-day time frame, LaSalle Hotel Properties (NYSE:LHO) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to LaSalle Hotel Properties (NYSE:LHO). These stocks are Pebblebrook Hotel Trust (NYSE:PEB), Strategic Hotels and Resorts Inc (NYSE:BEE), DiamondRock Hospitality Company (NYSE:DRH), Sunstone Hotel Investors Inc (NYSE:SHO), and RLJ Lodging Trust (NYSE:RLJ). This group of stocks are in the reit – hotel/motel industry and their market caps match LHO’s market cap.