Is Orient-Express Hotels Ltd. (NYSE:OEH) ready to raly soon? The best stock pickers are getting less optimistic. The number of long hedge fund positions stayed the same which is a slightly negative development in our experience.
In the financial world, there are a multitude of methods shareholders can use to monitor Mr. Market. A duo of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can beat the market by a significant amount (see just how much).
Just as integral, bullish insider trading activity is a second way to parse down the world of equities. Just as you’d expect, there are a variety of incentives for an executive to downsize shares of his or her company, but just one, very simple reason why they would buy. Many empirical studies have demonstrated the useful potential of this method if shareholders know where to look (learn more here).
Now, it’s important to take a gander at the key action regarding Orient-Express Hotels Ltd. (NYSE:OEH).
What does the smart money think about Orient-Express Hotels Ltd. (NYSE:OEH)?
At the end of the fourth quarter, a total of 9 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their stakes meaningfully.
Of the funds we track, Clough Capital Partners, managed by Charles Clough, holds the largest position in Orient-Express Hotels Ltd. (NYSE:OEH). Clough Capital Partners has a $20.9 million position in the stock, comprising 0.7% of its 13F portfolio. The second largest stake is held by Royce & Associates, managed by Chuck Royce, which held a $13.5 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Other peers that are bullish include Mario Gabelli’s GAMCO Investors, Ken Griffin’s Citadel Investment Group and Jim Simons’s Renaissance Technologies.
Due to the fact that Orient-Express Hotels Ltd. (NYSE:OEH) has witnessed bearish sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of fund managers that slashed their entire stakes last quarter. At the top of the heap, Richard Driehaus’s Driehaus Capital dropped the largest investment of the 450+ funds we monitor, worth about $2.5 million in stock., and Peter J. Eichler Jr. of Aletheia Research and Management was right behind this move, as the fund dropped about $2.1 million worth. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How are insiders trading Orient-Express Hotels Ltd. (NYSE:OEH)?
Insider buying is at its handiest when the primary stock in question has experienced transactions within the past 180 days. Over the latest six-month time period, Orient-Express Hotels Ltd. (NYSE:OEH) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Orient-Express Hotels Ltd. (NYSE:OEH). These stocks are Choice Hotels International, Inc. (NYSE:CHH), Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP), 7 DAYS GROUP HOLDINGS LIMITED(ADR) (NYSE:SVN), China Lodging Group, Ltd (ADR) (NASDAQ:HTHT), and Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN). This group of stocks belong to the lodging industry and their market caps are closest to OEH’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Choice Hotels International, Inc. (NYSE:CHH) | 4 | 0 | 3 |
| Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP) | 23 | 0 | 6 |
| 7 DAYS GROUP HOLDINGS LIMITED(ADR) (NYSE:SVN) | 12 | 0 | 0 |
| China Lodging Group, Ltd (ADR) (NASDAQ:HTHT) | 5 | 0 | 0 |
| Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN) | 9 | 0 | 0 |
With the results demonstrated by Insider Monkey’s studies, retail investors must always monitor hedge fund and insider trading sentiment, and Orient-Express Hotels Ltd. (NYSE:OEH) is an important part of this process.
