Is Hospitality Properties Trust (HPT) A Good Stock to Buy?

As aggregate interest increased, specific money managers have jumped into Hospitality Properties Trust (NYSE:HPT) headfirst. Alyeska Investment Group established the most outsized position in Hospitality Properties Trust (NYSE:HPT). Matthew Tewksbury’s Stevens Capital Management also initiated a $2.4 million position during the quarter. The other funds with new positions in the stock are Dmitry Balyasny’s Balyasny Asset Management, Ken Griffin’s Citadel Investment Group, and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Hospitality Properties Trust (NYSE:HPT) but similarly valued. These stocks are Healthcare Trust Of America Inc (NYSE:HTA), Cognex Corporation (NASDAQ:CGNX), Taubman Centers, Inc. (NYSE:TCO), and Endo Health Solutions Inc (NASDAQ:ENDP). This group of stocks’ market values are closest to HPT’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HTA 9 61443 -3
CGNX 11 256491 3
TCO 19 436312 1
ENDP 32 797272 -4

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $388 million. That figure was $62 million in HPT’s case. Endo Health Solutions Inc (NASDAQ:ENDP) is the most popular stock in this table. On the other hand Healthcare Trust Of America Inc (NYSE:HTA) is the least popular one with only 9 bullish hedge fund positions. Hospitality Properties Trust (NYSE:HPT) 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 ENDP might be a better candidate to consider taking a long position in.

Disclosure: None