Cliff Asness Is Selling These 5 Stocks

In this article, we discuss 5 stocks that Cliff Asness is selling. If you want our detailed analysis of Asness’ history, hedge fund performance, and investment philosophy, go directly to Cliff Asness Is Selling These 10 Stocks. 

5. The Cheesecake Factory Incorporated (NASDAQ:CAKE)

Number of Hedge Fund Holders: 20

Cliff Asness discarded its stake in The Cheesecake Factory Incorporated (NASDAQ:CAKE), an American restaurant company, in the fourth quarter of 2021, selling 26,809 shares that were owned as of Q3 2021. Cliff Asness first purchased shares of The Cheesecake Factory Incorporated (NASDAQ:CAKE) back in Q4 2010. 

On January 5, Stephens analyst James Rutherford upgraded The Cheesecake Factory Incorporated (NASDAQ:CAKE) to Overweight from Equal Weight, with a price target of $47, down from $53. The analyst reasoned that the stock’s “ongoing underperformance” and its ability to exceed 2019 unit volumes with the help of a strong off-premise business were why he upgraded The Cheesecake Factory Incorporated (NASDAQ:CAKE). The analyst further noted that the company can retain these sales in 2022. 

Castle Hook Partners held the biggest stake in The Cheesecake Factory Incorporated (NASDAQ:CAKE) in the third quarter of 2021, with 639,373 shares worth $30 million. Overall, 20 hedge funds were bullish on The Cheesecake Factory Incorporated (NASDAQ:CAKE), down from 26 funds in the preceding quarter. 

Here is what Baron Small Cap Fund has to say about The Cheesecake Factory Incorporated (NASDAQ:CAKE) in its Q1 2021 investor letter:

“Shares of The Cheesecake Factory, Inc., the operator of casual dining restaurants, were up significantly in the first quarter, as their dining rooms reopened, and business recovered from the depths caused by COVID restrictions. We believe that the company weathered the downturn very well and emerged a stronger, more profitable entity, with an improved outlook. Off Premise sales were robust during the shutdown, and we believe that a good portion of those sales will be retained, so that each restaurant will do more revenue than before. We expect about 15% of restaurants in the casual dining space will be shuttered forever, which will help Cheesecake’s volumes and already strong competitive position. And we are excited about the opportunity for it to grow units, especially in the North Italia and Fox brands, which the company acquired prior to COVID. However, with the stock quadrupling off the bottom and back to its highs of five years ago, and trading at a good multiple of our expectation of near-term earnings, we sold about a third of our position into strength.”