Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Funds Are Buying Jack in the Box Inc. (NASDAQ:JACK)

Jack in the Box Inc. (NASDAQ:JACK) was in 15 hedge funds’ portfolio at the end of the fourth quarter of 2012. JACK investors should pay attention to an increase in hedge fund interest lately. There were 12 hedge funds in our database with JACK holdings at the end of the previous quarter.

According to most traders, hedge funds are seen as worthless, outdated financial vehicles of the past. While there are greater than 8000 funds with their doors open at the moment, we at Insider Monkey hone in on the moguls of this group, about 450 funds. It is widely believed that this group oversees most of the smart money’s total asset base, and by monitoring their top equity investments, we have brought to light a few investment strategies that have historically outperformed the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 25 percentage points in 6.5 month (check out a sample of our picks).

Jack in the Box Inc. (NASDAQ:JACK)

Equally as important, optimistic insider trading activity is another way to parse down the investments you’re interested in. There are many incentives for a corporate insider to sell shares of his or her company, but only one, very clear reason why they would behave bullishly. Various academic studies have demonstrated the market-beating potential of this method if piggybackers know what to do (learn more here).

Now, we’re going to take a gander at the key action surrounding Jack in the Box Inc. (NASDAQ:JACK).

Hedge fund activity in Jack in the Box Inc. (NASDAQ:JACK)

At the end of the fourth quarter, a total of 15 of the hedge funds we track held long positions in this stock, a change of 25% from the third quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes meaningfully.

When looking at the hedgies we track, Clifton S. Robbins’s Blue Harbour Group had the biggest position in Jack in the Box Inc. (NASDAQ:JACK), worth close to $86 million, accounting for 9.7% of its total 13F portfolio. On Blue Harbour Group’s heels is Joshua Friedman and Mitchell Julis of Canyon Capital Advisors, with a $24 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining hedgies that are bullish include Glenn J. Krevlin’s Glenhill Advisors, Jim Simons’s Renaissance Technologies and James Dondero’s Highland Capital Management.

As aggregate interest increased, key hedge funds were leading the bulls’ herd. Ascend Capital, managed by Malcolm Fairbairn, initiated the most outsized position in Jack in the Box Inc. (NASDAQ:JACK). Ascend Capital had 5 million invested in the company at the end of the quarter. Paul Tudor Jones’s Tudor Investment Corp also initiated a $3 million position during the quarter. The following funds were also among the new JACK investors: Neil Chriss’s Hutchin Hill Capital, Israel Englander’s Millennium Management, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

What do corporate executives and insiders think about Jack in the Box Inc. (NASDAQ:JACK)?

Insider trading activity, especially when it’s bullish, is at its handiest when the primary stock in question has seen transactions within the past six months. Over the last six-month time frame, Jack in the Box Inc. (NASDAQ:JACK) has seen 1 unique insiders buying, and 9 insider sales (see the details of insider trades here).

With the results shown by Insider Monkey’s studies, retail investors must always keep an eye on hedge fund and insider trading activity, and Jack in the Box Inc. (NASDAQ:JACK) shareholders fit into this picture quite nicely.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!