Hedge Funds Are Crazy About Texas Roadhouse Inc (NASDAQ:TXRH)

Texas Roadhouse Inc (NASDAQ:TXRH) shareholders have witnessed an increase in hedge fund interest in recent months.

Texas Roadhouse Inc (NASDAQ:TXRH)

To most shareholders, hedge funds are perceived as unimportant, outdated financial vehicles of yesteryear. While there are greater than 8000 funds in operation at present, we look at the moguls of this club, around 450 funds. It is estimated that this group has its hands on the majority of all hedge funds’ total capital, and by monitoring their highest performing investments, we have figured out a number of investment strategies that have historically outpaced Mr. Market. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per 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 topped the S&P 500 index by 25 percentage points in 6.5 month (check out a sample of our picks).

Equally as integral, bullish insider trading activity is a second way to break down the financial markets. Just as you’d expect, there are lots of motivations for a corporate insider to downsize shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this tactic if you understand what to do (learn more here).

Now, it’s important to take a glance at the recent action surrounding Texas Roadhouse Inc (NASDAQ:TXRH).

How have hedgies been trading Texas Roadhouse Inc (NASDAQ:TXRH)?

At the end of the fourth quarter, a total of 14 of the hedge funds we track were bullish in this stock, a change of 27% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings meaningfully.

Of the funds we track, Sigma Capital Management, managed by SAC Subsidiary, holds the largest position in Texas Roadhouse Inc (NASDAQ:TXRH). Sigma Capital Management has a $26 million position in the stock, comprising 1.4% of its 13F portfolio. On Sigma Capital Management’s heels is Clint Carlson of Carlson Capital, with a $14 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Ken Griffin’s Citadel Investment Group, Jeffrey Vinik’s Vinik Asset Management and Steven Cohen’s SAC Capital Advisors.

As aggregate interest increased, specific money managers have jumped into Texas Roadhouse Inc (NASDAQ:TXRH) headfirst. Carlson Capital, managed by Clint Carlson, initiated the most outsized position in Texas Roadhouse Inc (NASDAQ:TXRH). Carlson Capital had 14 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $1 million investment in the stock during the quarter. The other funds with brand new TXRH positions are Glenn Russell Dubin’s Highbridge Capital Management, Paul Tudor Jones’s Tudor Investment Corp, and John Overdeck and David Siegel’s Two Sigma Advisors.

How have insiders been trading Texas Roadhouse Inc (NASDAQ:TXRH)?

Insider trading activity, especially when it’s bullish, is at its handiest when the company in question has experienced transactions within the past six months. Over the last six-month time period, Texas Roadhouse Inc (NASDAQ:TXRH) has experienced 1 unique insiders buying, and 5 insider sales (see the details of insider trades here).

With the results demonstrated by Insider Monkey’s strategies, everyday investors should always keep an eye on hedge fund and insider trading activity, and Texas Roadhouse Inc (NASDAQ:TXRH) is no exception.

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 Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!