Here is What Hedge Funds Think About Sunstone Hotel Investors Inc (SHO)

Due to the fact that Sunstone Hotel Investors Inc (NYSE:SHO) has witnessed falling interest from hedge fund managers, it’s easy to see that there lies a certain “tier” of hedgies that slashed their positions entirely by the end of the third quarter. Interestingly, Steve Cohen’s Point72 Asset Management said goodbye to the biggest position of all the hedgies watched by Insider Monkey, comprising about $3.4 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund dropped about $2.6 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Sunstone Hotel Investors Inc (NYSE:SHO) but similarly valued. We will take a look at Bank of Hawaii Corporation (NYSE:BOH), Chimera Investment Corporation (NYSE:CIM), Choice Hotels International, Inc. (NYSE:CHH), and SouFun Holdings Limited (ADR) (NYSE:SFUN). This group of stocks’ market caps resemble SHO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BOH 7 33901 0
CIM 16 291095 -1
CHH 12 64466 -2
SFUN 20 311889 -13

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $175 million. That figure was $64 million in SHO’s case. SouFun Holdings Limited (ADR) (NYSE:SFUN) is the most popular stock in this table. On the other hand Bank of Hawaii Corporation (NYSE:BOH) is the least popular one with only 7 bullish hedge fund positions. Sunstone Hotel Investors Inc (NYSE:SHO) 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 SFUN might be a better candidate to consider a long position.