Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN) was in 9 hedge funds’ portfolio at the end of the fourth quarter of 2012. HMIN investors should be aware of a decrease in activity from the world’s largest hedge funds in recent months. There were 9 hedge funds in our database with HMIN holdings at the end of the previous quarter.
To the average investor, there are many indicators shareholders can use to watch their holdings. A couple of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite investment managers can beat the market by a significant margin (see just how much).
Just as beneficial, optimistic insider trading activity is a second way to parse down the investments you’re interested in. Just as you’d expect, there are many stimuli for an upper level exec to downsize shares of his or her company, but just one, very obvious reason why they would behave bullishly. Plenty of empirical studies have demonstrated the impressive potential of this tactic if you know where to look (learn more here).
With all of this in mind, we’re going to take a gander at the latest action encompassing Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN).
What does the smart money think about Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN)?
At year’s end, a total of 9 of the hedge funds we track were long in this stock, a change of 0% from the third quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially.
Of the funds we track, Brett Barakett’s Tremblant Capital had the biggest position in Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN), worth close to $45 million, accounting for 2% of its total 13F portfolio. The second largest stake is held by Bain Capital of Brookside Capital, with a $35.3 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include Donald Chiboucis’s Columbus Circle Investors, Daniel S. Och’s OZ Management and George Soros’s Soros Fund Management.
Because Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN) has witnessed bearish sentiment from the smart money, it’s safe to say that there was a specific group of funds that elected to cut their full holdings heading into 2013. It’s worth mentioning that Brian Kelly’s Asian Century Quest sold off the biggest position of the 450+ funds we monitor, valued at about $2.5 million in stock.. Bruce Kovner’s fund, Caxton Associates LP, also dropped its stock, about $0.3 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
How have insiders been trading Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN)?
Insider buying is most useful when the company in question has seen transactions within the past 180 days. Over the last 180-day time period, Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN) has experienced zero unique insiders purchasing, 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 Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN). These stocks are 7 DAYS GROUP HOLDINGS LIMITED(ADR) (NYSE:SVN), Choice Hotels International, Inc. (NYSE:CHH), Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP), China Lodging Group, Ltd (ADR) (NASDAQ:HTHT), and Orient-Express Hotels Ltd. (NYSE:OEH). This group of stocks are in the lodging industry and their market caps are similar to HMIN’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| 7 DAYS GROUP HOLDINGS LIMITED(ADR) (NYSE:SVN) | 12 | 0 | 0 |
| Choice Hotels International, Inc. (NYSE:CHH) | 4 | 0 | 3 |
| Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP) | 23 | 0 | 6 |
| China Lodging Group, Ltd (ADR) (NASDAQ:HTHT) | 5 | 0 | 0 |
| Orient-Express Hotels Ltd. (NYSE:OEH) | 9 | 0 | 0 |
With the returns exhibited by Insider Monkey’s tactics, retail investors should always pay attention to hedge fund and insider trading activity, and Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN) is no exception.
