To many of your fellow readers, hedge funds are assumed to be overrated, outdated financial vehicles of a forgotten age. Although there are In excess of 8,000 hedge funds with their doors open in present day, this site focuses on the crème de la crème of this group, close to 525 funds. It is widely held that this group controls the majority of all hedge funds’ total assets, and by paying attention to their best picks, we’ve come up with a few investment strategies that have historically outpaced the S&P 500. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as key, bullish insider trading activity is a second way to look at the world of equities. As the old adage goes: there are plenty of reasons for an insider to downsize shares of his or her company, but only one, very simple reason why they would initiate a purchase. Many empirical studies have demonstrated the market-beating potential of this tactic if you know what to do (learn more here).
Now that that’s out of the way, let’s discuss the recent info for Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP).
How are hedge funds trading Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP)?
Heading into Q3, a total of 31 of the hedge funds we track were long in this stock, a change of 24% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially.
According to our 13F database, Mario Gabelli’s GAMCO Investors had the largest position in Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP), worth close to $185 million, accounting for 1.2% of its total 13F portfolio. On GAMCO Investors’s heels is Tiger Consumer Management, managed by Patrick McCormack, which held a $80.5 million position; the fund has 2.8% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include John Paulson’s Paulson & Co, Jay Petschek and Steven Major’s Corsair Capital Management and D. E. Shaw’s D E Shaw.
Consequently, particular hedge funds were leading the bulls’ herd. GAMCO Investors, managed by Mario Gabelli, assembled the biggest position in Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP). GAMCO Investors had 185 million invested in the company at the end of the quarter. Patrick McCormack’s Tiger Consumer Management also initiated a $80.5 million position during the quarter. The other funds with brand new RHP positions are John Paulson’s Paulson & Co, Jay Petschek and Steven Major’s Corsair Capital Management, and D. E. Shaw’s D E Shaw.
Insider trading activity in Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP)
Legal insider trading, particularly when it’s bullish, is most useful when the primary stock in question has experienced transactions within the past 180 days. Over the latest half-year time frame, Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP). These stocks are China Lodging Group, Ltd (ADR) (NASDAQ:HTHT), Orient-Express Hotels Ltd. (NYSE:OEH), Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN), Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), and Choice Hotels International, Inc. (NYSE:CHH). This group of stocks belong to the lodging industry and their market caps match RHP’s market cap.