Should You Buy SunCoke Energy, Inc (SXC)?

It’s worth mentioning that Howard Guberman’s Gruss Asset Management cut the largest stake of the 700 funds watched by Insider Monkey, comprising about $29.4 million in stock. Michael M. Rothenberg’s fund, Moab Capital Partners, also dumped its stock, about $8.3 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks similar to SunCoke Energy, Inc (NYSE:SXC). These stocks are Helix Energy Solutions Group Inc. (NYSE:HLX), Anworth Mortgage Asset Corporation (NYSE:ANH), Nuveen Floating Rate Income Fund (NYSE:JFR), and Boulder Brands Inc (NASDAQ:BDBD). This group of stocks’ market caps match SXC’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $73 million. That figure was $170 million in SXC’s case. Boulder Brands Inc (NASDAQ:BDBD) is the most popular stock in this table. On the other hand Nuveen Floating Rate Income Fund (NYSE:JFR) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks SunCoke Energy, Inc (NYSE:SXC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.