Is Sun Communities Inc (SUI) A Good Stock To Buy?

Because Sun Communities Inc (NYSE:SUI) has encountered a decline in interest from the smart money, it’s safe to say that there exists a select few fund managers that decided to sell off their positions entirely last quarter. Interestingly, Mark T. Gallogly’s Centerbridge Partners cashed in the biggest stake of the “upper crust” of funds tracked by Insider Monkey, totaling about $255.2 million in stock. Malcolm Fairbairn’s fund, Ascend Capital, also dumped its stock, about $8.3 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to Sun Communities Inc (NYSE:SUI). We will take a look at Senior Housing Properties Trust (NYSE:SNH), United Microelectronics Corp (ADR) (NYSE:UMC), Southwestern Energy Company (NYSE:SWN), and TFS Financial Corporation (NASDAQ:TFSL). This group of stocks’ market values are closest to SUI’s market value.

As you can see these stocks had an average of 17.5 hedge funds with bullish positions and the average amount invested in these stocks was $385 million. That figure was $236 million in SUI’s case. Southwestern Energy Company (NYSE:SWN) is the most popular stock in this table. On the other hand United Microelectronics Corp (ADR) (NYSE:UMC) is the least popular one with only 8 bullish hedge fund positions. Sun Communities Inc (NYSE:SUI) 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 SWN might be a better candidate to consider taking a long position in.