Hedge Funds Are Dumping Sunstone Hotel Investors Inc (SHO)

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that got rid of their entire stakes in the stock during the third quarter. Interestingly, Dmitry Balyasny’s Balyasny Asset Management got rid of the biggest position of the “upper crust” of funds followed by Insider Monkey, totaling an estimated $6 million in stock. Michael Swotes’s fund, Castle Ridge Investment Management, also dumped its stock, about $1.8 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Sunstone Hotel Investors Inc (NYSE:SHO) but similarly valued. These stocks are Kite Pharma Inc (NASDAQ:KITE), Manchester United PLC (NYSE:MANU), United States Steel Corporation (NYSE:X), and Blackstone Mortgage Trust Inc (NYSE:BXMT). This group of stocks’ market values resemble SHO’s market value.

As you can see these stocks had an average of 21.5 hedge funds with bullish positions and the average amount invested in these stocks was $366 million. That figure was $22 million in SHO’s case. United States Steel Corporation (NYSE:X) is the most popular stock in this table. On the other hand Manchester United PLC (NYSE:MANU) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Sunstone Hotel Investors Inc (NYSE:SHO) is even less popular than MANU. 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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