Is Chesapeake Lodging Trust (NYSE:CHSP) a good equity to bet on right now? We like to check what the smart money thinks first before doing extensive research. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to find the latest market-moving information.
Chesapeake Lodging Trust (NYSE:CHSP) has seen a decrease in enthusiasm from smart money 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 Monogram Residential Trust Inc (NYSE:MORE), CommVault Systems, Inc. (NASDAQ:CVLT), and Chambers Street Properties (NYSE:CSG) to gather more data points.
Follow Chesapeake Lodging Trust (NYSE:CHSP)
Follow Chesapeake Lodging Trust (NYSE:CHSP)
At the moment there are a lot of methods shareholders put to use to value publicly traded companies. A pair of the best methods are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the top hedge fund managers can outclass the broader indices by a solid margin (see the details here).
With all of this in mind, we’re going to take a peek at the key action regarding Chesapeake Lodging Trust (NYSE:CHSP).
How are hedge funds trading Chesapeake Lodging Trust (NYSE:CHSP)?
At the Q3’s end, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a decline of 8% from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Millennium Management, managed by Israel Englander, holds the biggest position in Chesapeake Lodging Trust (NYSE:CHSP). Millennium Management has a $9.1 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, holding a $8.5 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining professional money managers that are bullish, encompass David Costen Haley’s HBK Investments, Millennium Management Subsidiary’s Decade Capital Management and D. E. Shaw’s D E Shaw.
Seeing as Chesapeake Lodging Trust (NYSE:CHSP) has experienced a decline in interest from the aggregate hedge fund industry, we can see that there lies a certain “tier” of hedge funds that decided to sell off their positions entirely heading into Q4. It’s worth mentioning that Paul Orlin and Alex Porter’s Amici Capital sold off the biggest stake of all the hedgies tracked by Insider Monkey, totaling about $3.4 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund sold off about $1.7 million worth of shares.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Chesapeake Lodging Trust (NYSE:CHSP) but similarly valued. We will take a look at Monogram Residential Trust Inc (NYSE:MORE), CommVault Systems, Inc. (NASDAQ:CVLT), Chambers Street Properties (NYSE:CSG), and Sanderson Farms, Inc. (NASDAQ:SAFM). All of these stocks’ market caps match CHSP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MORE | 7 | 15067 | -2 |
| CVLT | 22 | 345515 | 0 |
| CSG | 20 | 128905 | 6 |
| SAFM | 18 | 270039 | -3 |
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $190 million. That figure was just $27 million in CHSP’s case. CommVault Systems, Inc. (NASDAQ:CVLT) is the most popular stock in this table. On the other hand Monogram Residential Trust Inc (NYSE:MORE) is the least popular one with only 7 bullish hedge fund positions. Chesapeake Lodging Trust (NYSE:CHSP) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CVLT might be a better candidate to consider a long position.
