Is San Juan Basin Royalty Trust (SJT) A Good Stock To Buy?

Due to the fact that San Juan Basin Royalty Trust (NYSE:SJT) has faced falling interest from hedge fund managers, we can see that there was a specific group of fund managers that slashed their entire stakes by the end of the third quarter. It’s worth mentioning that Jim Simons’s Renaissance Technologies dumped the biggest position of all the hedgies monitored by Insider Monkey, valued at an estimated $0.5 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also cut its stock, about $0 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 2 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as San Juan Basin Royalty Trust (NYSE:SJT) but similarly valued. These stocks are MainSource Financial Group Inc. (NASDAQ:MSFG), CNinsure Inc. (ADR) (NASDAQ:CISG), China Cord Blood Corp (NYSE:CO), and Cerus Corporation (NASDAQ:CERS). This group of stocks’ market caps are closest to SJT’s market cap.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $61 million in SJT’s case. Cerus Corporation (NASDAQ:CERS) is the most popular stock in this table. On the other hand MainSource Financial Group Inc. (NASDAQ:MSFG) is the least popular one with only 4 bullish hedge fund positions. San Juan Basin Royalty Trust (NYSE:SJT) is not the most popular stock in this group, but hedge fund interest is still above average. Even though this may imply it is a stock worth considering, t we’d rather spend our time researching stocks that hedge funds are collectively most bullish on. In this group, CERS might be a better alternative.