This Metric Says You Are Smart to Sell Jack in the Box Inc. (JACK)

Page 1 of 2

Is it smart to be bullish on Jack in the Box Inc. (NASDAQ:JACK)?

If you were to ask many investors, hedge funds are seen as overrated, old investment vehicles of a period lost to current times. Although there are more than 8,000 hedge funds in operation today, this site aim at the masters of this group, close to 525 funds. Analysts calculate that this group oversees the lion’s share of all hedge funds’ total assets, and by monitoring their highest performing picks, we’ve uncovered a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we‘ve began to sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).

Just as key, positive insider trading sentiment is another way to analyze the marketplace. Obviously, there are many stimuli for an upper level exec to drop shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this strategy if shareholders know where to look (learn more here).

Jack in the Box Inc. (NASDAQ:JACK)

Thus, it’s important to analyze the latest info for Jack in the Box Inc. (NASDAQ:JACK).

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

At the end of the second quarter, a total of 20 of the hedge funds we track were long in this stock, a change of -5% from the first quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes substantially.

According to our 13F database, Clifton S. Robbins’s Blue Harbour Group had the biggest position in Jack in the Box Inc. (NASDAQ:JACK), worth close to $59.4 million, comprising 4.5% of its total 13F portfolio. The second largest stake is held by Glenhill Advisors, managed by Glenn J. Krevlin, which held a $16.8 million position; the fund has 1.9% of its 13F portfolio invested in the stock. Some other peers that are bullish include Joshua Friedman and Mitchell Julis’s Canyon Capital Advisors, Ken Griffin’s Citadel Investment Group and Michael Doheny’s Freshford Capital Management.

Because Jack in the Box Inc. (NASDAQ:JACK) has faced dropping sentiment from the smart money’s best and brightest, logic holds that there exists a select few funds who were dropping their full holdings last quarter. Intriguingly, Paul Marshall and Ian Wace’s Marshall Wace LLP sold off the biggest stake of the “upper crust” of funds we key on, worth about $6.1 million in stock, and Neil Chriss of Hutchin Hill Capital was right behind this move, as the fund sold off about $2.1 million worth. These moves are important to note, as total hedge fund interest dropped by 1 funds last quarter.

How have insiders been trading Jack in the Box Inc. (NASDAQ:JACK)?

Legal insider trading, particularly when it’s bullish, is best served when the company in focus has seen transactions within the past half-year. Over the last six-month time period, Jack in the Box Inc. (NASDAQ:JACK) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Jack in the Box Inc. (NASDAQ:JACK). These stocks are Bob Evans Farms Inc (NASDAQ:BOBE), DineEquity Inc (NYSE:DIN), Buffalo Wild Wings (NASDAQ:BWLD), Papa John’s Int’l, Inc. (NASDAQ:PZZA), and Texas Roadhouse Inc (NASDAQ:TXRH). This group of stocks belong to the restaurants industry and their market caps match JACK’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!