Hedge Funds Are Selling Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT)

Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT) was in 31 hedge funds’ portfolio at the end of the fourth quarter of 2012. HOT investors should be aware of a decrease in hedge fund sentiment of late. There were 35 hedge funds in our database with HOT holdings at the end of the previous quarter.

Starwood Hotels call options heat up as shares extend gains

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With these “truths” under our belt, we’re going to take a glance at the recent action surrounding Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT).

How have hedgies been trading Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT)?

In preparation for this year, a total of 31 of the hedge funds we track were bullish in this stock, a change of -11% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their holdings substantially.

Of the funds we track, Tiger Consumer Management, managed by Patrick McCormack, holds the most valuable position in Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT). Tiger Consumer Management has a $89 million position in the stock, comprising 4.2% of its 13F portfolio. The second largest stake is held by James H. Litinsk of JHL Capital Group, with a $81 million position; 4.2% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include Steven Cohen’s SAC Capital Advisors, Jeffrey Furber’s AEW Capital Management and Mark T. Gallogly’s Centerbridge Partners.

Due to the fact that Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT) has witnessed declining sentiment from hedge fund managers, it’s safe to say that there lies a certain “tier” of fund managers that slashed their positions entirely heading into 2013. Intriguingly, John Murphy’s Alydar Capital cut the largest investment of all the hedgies we key on, valued at about $35 million in stock., and Richard Schimel of Diamondback Capital was right behind this move, as the fund sold off about $11 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 4 funds heading into 2013.

How have insiders been trading Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT)?

Insider buying is particularly usable when the primary stock in question has seen transactions within the past 180 days. Over the latest six-month time period, Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT) has experienced zero unique insiders buying, and 10 insider sales (see the details of insider trades here).

With the results shown by our time-tested strategies, retail investors should always watch hedge fund and insider trading activity, and Starwood Hotels & Resorts Worldwide, Inc (NYSE:HOT) is an important part of this process.

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