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Should You Avoid Suncor Energy Inc. (USA) (SU)?

Seeing as Suncor Energy Inc. (USA) (NYSE:SU) has experienced a decline in interest from the smart money, it’s safe to say that there lies a certain “tier” of funds that slashed their entire stakes last quarter. Interestingly, Warren Buffett’s Berkshire Hathaway sold off the largest position of all the hedgies followed by Insider Monkey, valued at about $617.7 million in stock. First Eagle Investment Management also dropped its stock, about $206.1 million worth of SU shares. These transactions are important to note, as aggregate hedge fund interest dropped by 3 funds last quarter.

Let’s go over hedge fund activity in other stocks similar to Suncor Energy Inc. (USA) (NYSE:SU). We will take a look at Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), EOG Resources Inc (NYSE:EOG), Canadian National Railway (USA) (NYSE:CNI), and BHP Billiton Limited (ADR) (NYSE:BHP). This group of stocks’ market values are similar to SU’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TEVA 54 4254824 -1
EOG 51 1275879 15
CNI 17 1447565 -4
BHP 19 253041 2

As you can see these stocks had an average of 35 hedge funds with bullish positions and the average amount invested in these stocks was $1.81 billion. That figure was just $810 million in SU’s case. Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA) is the most popular stock in this table. On the other hand Canadian National Railway (USA) (NYSE:CNI) is the least popular one with only 17 bullish hedge fund positions. Suncor Energy Inc. (USA) (NYSE:SU) 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 TEVA might be a better candidate to consider taking a long position in.

Disclosure: None

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