The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Summit Hotel Properties Inc (NYSE:INN).
Is Summit Hotel Properties Inc (NYSE:INN) a buy at the moment? Money managers are categorically betting on the stock. The number of long hedge fund bets improved by 3 in recent months. INN was in 9 hedge funds’ portfolios at the end of the third quarter of 2016. There were 6 hedge funds in our database with INN holdings at the end of the second quarter. 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 TTM Technologies, Inc. (NASDAQ:TTMI), Gentherm Inc (NASDAQ:THRM), and Tree.com Inc (NASDAQ:TREE) to gather more data points.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Paul Cowan / Shutterstock.com
Hedge fund activity in Summit Hotel Properties Inc (NYSE:INN)
Heading into the fourth quarter of 2016, a total of 9 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 50% jump from the previous quarter. Below, you can check out the change in hedge fund sentiment towards INN over the last 5 quarters, which has been quite volatile in 2016. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Robert B. Gillam’s McKinley Capital Management has the largest position in Summit Hotel Properties Inc (NYSE:INN), worth close to $7.3 million. On McKinley Capital Management’s heels is J. Alan Reid, Jr. of Forward Management, with a $6.6 million position. Remaining hedge funds and institutional investors that are bullish include Cliff Asness’ AQR Capital Management, Millennium Management, one of the 10 largest hedge funds in the world, and Ken Fisher’s Fisher Asset Management. We should note that Forward Management is among our list of the 100 best performing hedge funds, which is based on the performance of their 13F long positions in non-micro-cap stocks.
As industry-wide interest jumped, some big names were breaking ground themselves. Matthew Tewksbury’s Stevens Capital Management established the most outsized position in Summit Hotel Properties Inc (NYSE:INN). Stevens Capital Management had $0.4 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $0.4 million position during the quarter. The only other fund with a brand new INN position was Mike Vranos’ Ellington.
Let’s go over hedge fund activity in other stocks similar to Summit Hotel Properties Inc (NYSE:INN). We will take a look at TTM Technologies, Inc. (NASDAQ:TTMI), Gentherm Inc (NASDAQ:THRM), Tree.com Inc (NASDAQ:TREE), and Calavo Growers, Inc. (NASDAQ:CVGW). This group of stocks’ market values match INN’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TTMI | 20 | 85704 | 5 |
| THRM | 11 | 27624 | -2 |
| TREE | 19 | 110299 | 0 |
| CVGW | 18 | 59180 | 5 |
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 $71 million. That figure was $27 million in INN’s case. TTM Technologies, Inc. (NASDAQ:TTMI) is the most popular stock in this table. On the other hand Gentherm Inc (NASDAQ:THRM) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Summit Hotel Properties Inc (NYSE:INN) is even less popular than THRM. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.
Disclosure: None
