Here’s Why Aristotle Value Equity Strategy Exited Sun Communities (SUI)

Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund returned 10.57% gross of fees, underperforming the Russell 1000 Value Index, which returned 12.42%. The underperformance of the fund relative to the benchmark in the quarter was attributed to the stock selection while the sector allocation had a positive impact. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Aristotle Value Equity Strategy highlighted stocks like Sun Communities, Inc. (NYSE:SUI) in the fourth quarter 2022 investor letter. Sun Communities, Inc. (NYSE:SUI) is a real estate investment trust. On March 24, 2023, Sun Communities, Inc. (NYSE:SUI) stock closed at $133.35 per share. One-month return of Sun Communities, Inc. (NYSE:SUI) was -9.01%, and its shares lost 23.29% of their value over the last 52 weeks. Sun Communities, Inc. (NYSE:SUI) has a market capitalization of $17.178 billion.

Aristotle Value Equity Strategy made the following comment about Sun Communities, Inc. (NYSE:SUI) in its Q4 2022 investor letter:

“During the quarter, we exited our investments in Sun Communities, Inc. (NYSE:SUI), Elanco Animal Health and Tyson Foods and established new positions in Merck and Sysco.

We originally invested in Sun Communities during the third quarter of 2018. During our time as shareholders, the company continued its expansion of housing sites and was able to steadily raise rents, items we had identified as catalysts. More recently, Sun has made significant acquisitions, including Safe Harbor in 2020 (owner and operator of ~100 marinas in the U.S.) and Park Holidays in 2022 (the second-largest U.K. holiday park). Given recent acquisitions and diversification outside of the U.S., we decided to exit our position in Sun and, with the proceeds, increase our investment in Equity Lifestyle Properties, also an operator of manufactured home communities.”

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Sun Communities, Inc. (NYSE:SUI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Sun Communities, Inc. (NYSE:SUI) at the end of the fourth quarter which was 35 in the previous quarter.

We discussed Sun Communities, Inc. (NYSE:SUI) in another article and shared Baron Real Estate Income Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.