Strategic Hotels and Resorts Inc (NYSE:BEE) has experienced an increase in hedge fund sentiment recently.
In the financial world, there are many gauges investors can use to watch publicly traded companies. A pair of the best are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top investment managers can outpace the broader indices by a solid margin (see just how much).
Just as key, bullish insider trading activity is a second way to break down the stock market universe. Just as you’d expect, there are many reasons for a bullish insider to cut shares of his or her company, but just one, very simple reason why they would buy. Many empirical studies have demonstrated the impressive potential of this tactic if shareholders understand where to look (learn more here).
Now, let’s take a gander at the latest action encompassing Strategic Hotels and Resorts Inc (NYSE:BEE).
What does the smart money think about Strategic Hotels and Resorts Inc (NYSE:BEE)?
In preparation for this quarter, a total of 20 of the hedge funds we track were long in this stock, a change of 25% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings significantly.
Of the funds we track, Orange Capital, managed by Daniel Lewis, holds the most valuable position in Strategic Hotels and Resorts Inc (NYSE:BEE). Orange Capital has a $62.3 million position in the stock, comprising 8.6% of its 13F portfolio. Coming in second is Capital Growth Management, managed by Ken Heebner, which held a $58.8 million position; 1.5% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include J. Alan Reid, Jr.’s Forward Management, John Khoury’s Long Pond Capital and John Paulson’s Paulson & Co.
Consequently, key money managers have been driving this bullishness. Orange Capital, managed by Daniel Lewis, established the biggest position in Strategic Hotels and Resorts Inc (NYSE:BEE). Orange Capital had 62.3 million invested in the company at the end of the quarter. Ken Heebner’s Capital Growth Management also initiated a $58.8 million position during the quarter. The other funds with new positions in the stock are Andrew Sandler’s Sandler Capital Management, Robert Jaffe’s Force Capital, and Geoffrey Raynor’s Q Investments (Specter Holdings).
How have insiders been trading Strategic Hotels and Resorts Inc (NYSE:BEE)?
Insider buying is most useful when the company we’re looking at has seen transactions within the past half-year. Over the last six-month time frame, Strategic Hotels and Resorts Inc (NYSE:BEE) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Strategic Hotels and Resorts Inc (NYSE:BEE). These stocks are Chesapeake Lodging Trust (NYSE:CHSP), LaSalle Hotel Properties (NYSE:LHO), Sunstone Hotel Investors Inc (NYSE:SHO), Pebblebrook Hotel Trust (NYSE:PEB), and DiamondRock Hospitality Company (NYSE:DRH). All of these stocks are in the reit – hotel/motel industry and their market caps match BEE’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Chesapeake Lodging Trust (NYSE:CHSP) | 7 | 0 | 1 |
| LaSalle Hotel Properties (NYSE:LHO) | 8 | 0 | 1 |
| Sunstone Hotel Investors Inc (NYSE:SHO) | 13 | 1 | 1 |
| Pebblebrook Hotel Trust (NYSE:PEB) | 5 | 0 | 0 |
| DiamondRock Hospitality Company (NYSE:DRH) | 15 | 0 | 0 |
With the returns shown by Insider Monkey’s studies, retail investors must always watch hedge fund and insider trading activity, and Strategic Hotels and Resorts Inc (NYSE:BEE) is an important part of this process.
