Is Sun Communities (SUI) A Smart Long-Term Buy?

ClearBridge Investments, an investment management firm, published its “Mid Cap Strategy” third quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Mid Cap Strategy outperformed its Russell Midcap Index during the third quarter. On an absolute basis, the Strategy had gains across eight of the 11 sectors in which it was invested during the quarter. The leading contributors were the health care and financials sectors while consumer discretionary was the primary detractor. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

ClearBridge Mid Cap Strategy, in its Q3 2021 investor letter, mentioned Sun Communities, Inc. (NYSE: SUI) and discussed its stance on the firm. Sun Communities, Inc. is a Southfield, Michigan-based real estate investment trust company with a $24.0 billion market capitalization. SUI delivered a -1.11% return since the beginning of the year, while its 12-month returns are up by 43.96%. The stock closed at $207.64 per share on January 04, 2022

Here is what ClearBridge Mid Cap Strategy has to say about Sun Communities, Inc.  in its Q3 2021 investor letter:

“Our commitment to constantly improve the risk/reward of the portfolio kept us active during the third quarter in repositioning to capitalize on opportunities we have previously sourced and derisked. We initiated a position in Sun Communities, a U.S. real estate investment trust (REIT) that specializes in investing in manufactured housing communities, recreational vehicle (RV) resorts and marinas. As the economy works through housing supply constraints, Sun’s manufactured housing communities are increasingly appealing to younger, lower income populations in prime growth locations through the Sun Belt. Additionally, Sun’s expanded RV park offerings have seen healthy demand from increasing numbers of retiring baby boomers purchasing RVs as well as greater numbers of road trips in the wake of COVID-19.”

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Based on our calculations, Sun Communities, Inc. (NYSE: SUI) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. SUI was in 33 hedge fund portfolios at the end of the third quarter of 2021, compared to 30 funds in the previous quarter. Sun Communities, Inc. (NYSE: SUI) delivered a 10.35% return in the past 3 months.

In November 2021, we published an article that includes SUI in Echo Street Capital Management: Greg Poole’s Top 10 Stock Picks. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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