Do Hedge Funds Love Sunoco Logistics Partners L.P. (SXL)?

Judging by the fact that Sunoco Logistics Partners L.P. (NYSE:SXL) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of hedge funds who sold off their entire stakes heading into Q4. It’s worth mentioning that Millennium Management Subsidiary’s Green Arrow Capital Management said goodbye to the largest position of the “upper crust” of funds tracked by Insider Monkey, worth an estimated $4.1 million in call options., and Millennium Management was right behind this move, as the fund dumped about $1.9 million worth.

Let’s go over hedge fund activity in other stocks similar to Sunoco Logistics Partners L.P. (NYSE:SXL). These stocks are The Cooper Companies, Inc. (NYSE:COO), VimpelCom Ltd (ADR) (NASDAQ:VIP), Mednax Inc. (NYSE:MD), and Arthur J. Gallagher & Co. (NYSE:AJG). All of these stocks’ market caps match SXL’s market cap.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $248 million, compared to just $67 million in SXL’s case. The Cooper Companies, Inc. (NYSE:COO) is the most popular stock in this table and VimpelCom Ltd (ADR) (NASDAQ:VIP) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Sunoco Logistics Partners L.P. (NYSE:SXL) is even less popular than VIP. Considering that hedge funds aren’t fond of this stock in relation to other companies covered 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.