Sunedison Inc (SUNE): Are Hedge Funds Right About This Stock?

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Due to the fact that Sunedison Inc (NYSE:SUNE) has faced a declination in interest from the smart money, logic holds that there were a few money managers that elected to cut their full holdings last quarter. It’s worth mentioning that Dan Loeb’s Third Point dropped the biggest investment of all the hedgies monitored by Insider Monkey, comprising close to $370.9 million in stock. Stephen Mandel’s fund, Lone Pine Capital, also said goodbye to its stock, about $289 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 20 funds last quarter.

Let’s also examine hedge fund activity in other stocks similar to Sunedison Inc (NYSE:SUNE). We will take a look at Chemed Corporation (NYSE:CHE), FS Investment Corporation (NYSE:FSIC), DSW Inc. (NYSE:DSW), and INC Research Holdings Inc (NASDAQ:INCR). All of these stocks’ market caps are closest to SUNE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CHE 14 190086 3
FSIC 8 9735 0
DSW 29 292252 -7
INCR 25 208713 6

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $175 million. That figure was $1,057 million in SUNE’s case. DSW Inc. (NYSE:DSW) is the most popular stock in this table. On the other hand FS Investment Corporation (NYSE:FSIC) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Sunedison Inc (NYSE:SUNE) 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.

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