While the market driven by short-term sentiment influenced by uncertainty regarding the future of the interest rate environment in the US, the low commodity prices and the economic turmoil in China, many smart money investors are keeping their optimism regarding the current bull run, while still hedging many of their long positions. However, as we know, big investors usually buy stocks with strong fundamentals, which is why we believe we can profit from imitating them. In this article, we are going to take a look at the smart money sentiment surrounding Hospitality Properties Trust (NYSE:HPT).
Hospitality Properties Trust (NYSE:HPT) investors should be aware of an increase in activity from the world’s largest hedge funds recently. 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 Graco Inc. (NYSE:GGG), NCR Corporation (NYSE:NCR), and Molina Healthcare, Inc. (NYSE:MOH) to gather more data points.
To most stock holders, hedge funds are viewed as underperforming, outdated financial tools of years past. While there are more than 8000 funds trading today, Our researchers choose to focus on the upper echelon of this group, around 700 funds. These money managers watch over the lion’s share of all hedge funds’ total capital, and by tracking their first-class investments, Insider Monkey has deciphered a few investment strategies that have historically outperformed the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points per year for a decade in their back tests.
With all of this in mind, let’s take a look at the new action surrounding Hospitality Properties Trust (NYSE:HPT).
Hedge fund activity in Hospitality Properties Trust (NYSE:HPT)
At the end of the third quarter, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 6% from the second quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing 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 Hospitality Properties Trust (NYSE:HPT), worth close to $19.9 million, amounting to 0.7% of its total 13F portfolio. On Echo Street Capital Management’s heels is Pzena Investment Management, managed by Richard S. Pzena, which holds a $15 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that hold long positions comprise Jim Simons’s Renaissance Technologies, and John Overdeck and David Siegel’s Two Sigma Advisors.