Is SL Green Realty Corp (SLG) A Good Stock To Buy?

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Since SL Green Realty Corp (NYSE:SLG) has experienced declining sentiment from hedge fund managers, it’s safe to say that there exists a select few funds who were dropping their entire stakes heading into Q4. Intriguingly, Michael Platt and William Reeves’s BlueCrest Capital Mgmt. sold off the largest stake of the “upper crust” of funds tracked by Insider Monkey, totaling close to $2.7 million in stock. Peter Muller’s fund, PDT Partners, also dumped its holding, about $2.7 million worth of shares. These transactions are intriguing to say the least, as total hedge fund interest was cut by 8 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks similar to SL Green Realty Corp (NYSE:SLG). These stocks are CBRE Group Inc (NYSE:CBG), Newell Rubbermaid Inc. (NYSE:NWL), Fastenal Company (NASDAQ:FAST), and Plains GP Holdings LP (NYSE:PAGP). This group of stocks’ market caps match SLG’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CBG 32 1662629 0
NWL 27 468886 8
FAST 17 300642 -2
PAGP 27 758247 4

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $798 million. That figure was $100 million in SLG’s case. CBRE Group Inc (NYSE:CBG) is the most popular stock in this table, whereas Fastenal Company (NASDAQ:FAST) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks SL Green Realty Corp (NYSE:SLG) is even less popular than FAST. 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. 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.

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