Is CubeSmart (CUBE) A Good Stock To Buy?

Seeing as CubeSmart (NYSE:CUBE) has experienced bearish sentiment from the aggregate hedge fund industry, logic holds that there is a sect of hedgies that decided to sell off their full holdings heading into Q4. It’s worth mentioning that Jim Simons’ Renaissance Technologies dropped the biggest position of the 700 funds followed by Insider Monkey, worth an estimated $21.4 million in stock, and George Hall’s Clinton Group was right behind this move, as the fund dumped about $19.5 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to CubeSmart (NYSE:CUBE). These stocks are Murphy Oil Corporation (NYSE:MUR), VCA Antech Inc (NASDAQ:WOOF), MarketAxess Holdings Inc. (NASDAQ:MKTX), and Herbalife Ltd. (NYSE:HLF). This group of stocks’ market caps match CUBE’s market cap.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1.02 billion. That figure was $206 million in CUBE’s case. Herbalife Ltd. (NYSE:HLF) is the most popular stock in this table. On the other hand Murphy Oil Corporation (NYSE:MUR) is the least popular one with only 16 bullish hedge fund positions. CubeSmart (NYSE:CUBE) 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 HLF might be a better candidate to consider taking a long position in.

Disclosure: None