Is CubeSmart (CUBE) A Good Stock To Buy?

As aggregate interest increased, specific money managers have been driving this bullishness. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, assembled the most outsized position in CubeSmart (NYSE:CUBE). Marshall Wace LLP had $5.3 million invested in the company at the end of the quarter. Chuck Royce’s Royce & Associates also initiated a $2 million position during the quarter. The other funds with brand new CUBE positions are Mike Vranos’ Ellington and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as CubeSmart (NYSE:CUBE) but similarly valued. We will take a look at TransUnion (NYSE:TRU), TIM Participacoes SA (ADR) (NYSE:TSU), Manhattan Associates, Inc. (NASDAQ:MANH), and Empire State Realty Trust Inc (NYSE:ESRT). This group of stocks’ market valuations match CubeSmart (NYSE:CUBE)’s market valuation.

As you can see, these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $217 million. That figure was $261 million in CubeSmart (NYSE:CUBE)’s case. Manhattan Associates, Inc. (NASDAQ:MANH) is the most popular stock in this table. On the other hand, Empire State Realty Trust Inc (NYSE:ESRT) is the least popular one with only 9 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, Manhattan Associates, Inc. (NASDAQ:MANH) might be a better candidate to consider a long position.