Is Sunoco LP (SUN) A Good Stock To Buy?

Since Sunoco LP (NYSE:SUN) has faced a decline in interest from the smart money, we can see that there is a sect of funds who were dropping their positions entirely heading into Q4. Interestingly, Charles Davidson’s Wexford Capital sold off the biggest position of all the hedgies tracked by Insider Monkey, worth an estimated $6.5 million in stock, and Ed Bosek’s BeaconLight Capital was right behind this move, as the fund sold off about $6.2 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Sunoco LP (NYSE:SUN) but similarly valued. We will take a look at Sibanye Gold Ltd (ADR) (NYSE:SBGL), Apple Hospitality REIT Inc (NYSE:APLE), ONE Gas Inc (NYSE:OGS), and Hawaiian Electric Industries, Inc. (NYSE:HE). All of these stocks’ market caps match SUN’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $58 million. That figure was $48 million in SUN’s case. Hawaiian Electric Industries, Inc. (NYSE:HE) is the most popular stock in this table. On the other hand Sibanye Gold Ltd (ADR) (NYSE:SBGL) is the least popular one with only 8 bullish hedge fund positions. Sunoco LP (NYSE:SUN) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on recently. In this regard HE might be a better candidate to consider taking a long position in.

Disclosure: None