Is Pebblebrook Hotel Trust (PEB) a Good Buy?

Hedge funds and other investment firms that we track manage billions of dollars of their wealthy clients’ money, and needless to say, they are painstakingly thorough when analyzing where to invest this money, as their own wealth depends on it. Regardless of the various methods used by elite investors like David Tepper and Dan Loeb, the resources they expend are second-to-none. This is especially valuable when it comes to small-cap stocks, which is where they generate their strongest outperformance, as their resources give them a huge edge when it comes to studying these stocks compared to the average investor, which is why we intently follow their activity in the small-cap space.

Is Pebblebrook Hotel Trust (NYSE:PEB) a buy right now? The best stock pickers are becoming less confident. The number of bullish hedge fund bets decreased by 2 in recent months. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Janus Capital Group Inc (NYSE:JNS), Regal-Beloit Corporation (NYSE:RBC), and The Medicines Company (NASDAQ:MDCO) to gather more data points.

Keeping this in mind, we’re going to view the latest action surrounding Pebblebrook Hotel Trust (NYSE:PEB).

Hedge fund activity in Pebblebrook Hotel Trust (NYSE:PEB)

At the end of the third quarter, a total of 5 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -29% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Greg Poole’s Echo Street Capital Management has the most valuable position in Pebblebrook Hotel Trust (NYSE:PEB), worth close to $11.6 million, comprising 0.4% of its total 13F portfolio. Sitting at the No. 2 spot is Clinton Group, managed by George Hall, which holds an $0.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining peers that are bullish comprise Cliff Asness’s AQR Capital Management, Jacob Gottlieb’s Visium Asset Management and Matthew Hulsizer’s PEAK6 Capital Management.