Is Sunoco Logistics Partners L.P. (SXL) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dumped their entire stakes in the stock during the third quarter. It’s worth mentioning that Dmitry Balyasny’s Balyasny Asset Management dumped the biggest investment of all the hedgies followed by Insider Monkey, valued at close to $7.3 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund said goodbye to about $3.2 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Sunoco Logistics Partners L.P. (NYSE:SXL) but similarly valued. We will take a look at Alliant Energy Corporation (NYSE:LNT), Lear Corporation (NYSE:LEA), Total System Services, Inc. (NYSE:TSS), and Newfield Exploration Co. (NYSE:NFX). This group of stocks’ market values are similar to SXL’s market value.

As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $487 million. That figure was $124 million in SXL’s case. Newfield Exploration Co. (NYSE:NFX) is the most popular stock in this table. On the other hand Alliant Energy Corporation (NYSE:LNT) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Sunoco Logistics Partners L.P. (NYSE:SXL) is even less popular than LNT. 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.

Disclosure: None