Is LaSalle Hotel Properties (NYSE:LHO) a bargain? Prominent investors are getting less bullish. The number of long hedge fund positions were cut by 1 in recent months.
Equally as important, bullish insider trading sentiment is another way to break down the world of equities. As the old adage goes: there are a variety of motivations for a bullish insider to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the market-beating potential of this strategy if “monkeys” understand where to look (learn more here).
Consequently, let’s take a look at the key action regarding LaSalle Hotel Properties (NYSE:LHO).
What have hedge funds been doing with LaSalle Hotel Properties (NYSE:LHO)?
Heading into Q2, a total of 8 of the hedge funds we track were bullish in this stock, a change of -11% from the first quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were increasing their holdings significantly.
Of the funds we track, Royce & Associates, managed by Chuck Royce, holds the largest position in LaSalle Hotel Properties (NYSE:LHO). Royce & Associates has a $19.7 million position in the stock, comprising 0.1% of its 13F portfolio. On Royce & Associates’s heels is John Overdeck and David Siegel of Two Sigma Advisors, with a $14.4 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Ken Griffin’s Citadel Investment Group, Matthew Tewksbury’s Stevens Capital Management and Israel Englander’s Millennium Management.
Judging by the fact that LaSalle Hotel Properties (NYSE:LHO) has experienced falling interest from hedge fund managers, we can see that there is a sect of fund managers who were dropping their positions entirely in Q1. At the top of the heap, Steven Cohen’s SAC Capital Advisors sold off the biggest stake of the 450+ funds we watch, comprising close to $8.3 million in stock.. Paul Tudor Jones’s fund, Tudor Investment Corp, also sold off its stock, about $0.6 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 1 funds in Q1.
Insider trading activity in LaSalle Hotel Properties (NYSE:LHO)
Insider trading activity, especially when it’s bullish, is best served when the primary stock in question has experienced transactions within the past six months. Over the latest 180-day time period, LaSalle Hotel Properties (NYSE:LHO) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to LaSalle Hotel Properties (NYSE:LHO). These stocks are Pebblebrook Hotel Trust (NYSE:PEB), Strategic Hotels and Resorts Inc (NYSE:BEE), DiamondRock Hospitality Company (NYSE:DRH), Sunstone Hotel Investors Inc (NYSE:SHO), and RLJ Lodging Trust (NYSE:RLJ). This group of stocks belong to the reit – hotel/motel industry and their market caps resemble LHO’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Pebblebrook Hotel Trust (NYSE:PEB) | 5 | 0 | 0 |
| Strategic Hotels and Resorts Inc (NYSE:BEE) | 20 | 0 | 0 |
| DiamondRock Hospitality Company (NYSE:DRH) | 15 | 0 | 0 |
| Sunstone Hotel Investors Inc (NYSE:SHO) | 13 | 1 | 1 |
| RLJ Lodging Trust (NYSE:RLJ) | 20 | 0 | 1 |
With the returns shown by the aforementioned time-tested strategies, retail investors must always keep an eye on hedge fund and insider trading sentiment, and LaSalle Hotel Properties (NYSE:LHO) is an important part of this process.
