Should You Avoid LaSalle Hotel Properties (LHO)?

Seeing as LaSalle Hotel Properties (NYSE:LHO) has experienced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of funds who were dropping their full holdings by the end of the third quarter. Intriguingly, Parag Vora’s HG Vora Capital Management said goodbye to the largest investment of the “upper crust” of funds watched by Insider Monkey, valued at about $29.5 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also cut its call options, about $1.2 million worth.

Let’s also examine hedge fund activity in other stocks similar to LaSalle Hotel Properties (NYSE:LHO). We will take a look at Oceaneering International (NYSE:OII), NetScout Systems, Inc. (NASDAQ:NTCT), Coherent, Inc. (NASDAQ:COHR), and Pan American Silver Corp. (USA) (NASDAQ:PAAS). This group of stocks’ market valuations match LHO’s market valuation.

As you can see these stocks had an average of 21.25 hedge funds with bullish positions and the average amount invested in these stocks was $217 million. That figure was $22 million in LHO’s case. Coherent, Inc. (NASDAQ:COHR) is the most popular stock in this table. On the other hand NetScout Systems, Inc. (NASDAQ:NTCT) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks LaSalle Hotel Properties (NYSE:LHO) is even less popular than NTCT. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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