Are Hedge Funds On To Something With Texas Roadhouse Inc (TXRH)?

Now, some big names were breaking ground themselves. Citadel Investment Group established the biggest position in Texas Roadhouse Inc (NASDAQ:TXRH). Balyasny Asset Management also made a $17.1 million investment in the stock during the quarter. The following funds were also among the new TXRH investors: Melvin Capital Management, Israel Englander’s Millennium Management, and George Hall’s Clinton Group.

Let’s also examine hedge fund activity in other stocks similar to Texas Roadhouse Inc (NASDAQ:TXRH). These stocks are Ubiquiti Networks Inc (NASDAQ:UBNT), First Horizon National Corporation (NYSE:FHN), Huntsman Corporation (NYSE:HUN), and John Wiley & Sons Inc (NYSE:JW). This group of stocks’ market values match TXRH’s market value.

As you can see these stocks had an average of 21.5 hedge funds with bullish positions and the average amount invested in these stocks was $295 million. That figure was $186 million in TXRH’s case. Huntsman Corporation (NYSE:HUN) is the most popular stock in this table. On the other hand John Wiley & Sons Inc (NYSE:JW) is the least popular one with only 12 bullish hedge fund positions. Texas Roadhouse Inc (NASDAQ:TXRH) 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 HUN might be a better candidate to consider a long position in. TXRH is worth watching though, given the rapidly increasing smart money ownership of the stock.

Disclosure: None