In the financial world, there are plenty of methods shareholders can use to analyze Mr. Market. A couple of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top hedge fund managers can outpace the broader indices by a healthy margin (see just how much).
Just as key, optimistic insider trading sentiment is a second way to parse down the financial markets. Obviously, there are a number of reasons for an insider to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Various academic studies have demonstrated the impressive potential of this strategy if “monkeys” understand what to do (learn more here).
Keeping this in mind, we’re going to take a gander at the recent action regarding Sun Communities Inc (NYSE:SUI).
Hedge fund activity in Sun Communities Inc (NYSE:SUI)
In preparation for this year, a total of 5 of the hedge funds we track were long in this stock, a change of -17% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their holdings significantly.
According to our comprehensive database, Renaissance Technologies, managed by Jim Simons, holds the largest position in Sun Communities Inc (NYSE:SUI). Renaissance Technologies has a $11.6 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Renaissance Technologies’s heels is Forward Management, managed by J. Alan Reid, Jr., which held a $9 million position; 0.6% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include Cliff Asness’s AQR Capital Management, John Overdeck and David Siegel’s Two Sigma Advisors and Ken Griffin’s Citadel Investment Group.
Due to the fact that Sun Communities Inc (NYSE:SUI) has faced falling interest from the aggregate hedge fund industry, we can see that there were a few funds that slashed their entire stakes at the end of the year. It’s worth mentioning that Paul Tudor Jones’s Tudor Investment Corp sold off the largest investment of the “upper crust” of funds we watch, valued at an estimated $0.8 million in stock., and Robert B. Gillam of McKinley Capital Management was right behind this move, as the fund sold off about $0.4 million worth. These transactions are important to note, as total hedge fund interest dropped by 1 funds at the end of the year.
What do corporate executives and insiders think about Sun Communities Inc (NYSE:SUI)?
Insider trading activity, especially when it’s bullish, is most useful when the company we’re looking at has experienced transactions within the past six months. Over the latest 180-day time frame, Sun Communities Inc (NYSE:SUI) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Sun Communities Inc (NYSE:SUI). These stocks are Post Properties Inc (NYSE:PPS), ARMOUR Residential REIT, Inc. (NYSE:ARR), CYS Investments Inc (NYSE:CYS), PennyMac Mortgage Investment Trust (NYSE:PMT), and Colonial Properties Trust Inc (NYSE:CLP). All of these stocks are in the reit – residential industry and their market caps are closest to SUI’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Post Properties Inc (NYSE:PPS) | 10 | 0 | 5 |
| ARMOUR Residential REIT, Inc. (NYSE:ARR) | 13 | 5 | 0 |
| CYS Investments Inc (NYSE:CYS) | 14 | 2 | 1 |
| PennyMac Mortgage Investment Trust (NYSE:PMT) | 21 | 1 | 2 |
| Colonial Properties Trust Inc (NYSE:CLP) | 6 | 0 | 3 |
With the results demonstrated by Insider Monkey’s strategies, retail investors should always pay attention to hedge fund and insider trading activity, and Sun Communities Inc (NYSE:SUI) shareholders fit into this picture quite nicely.
