Here is What Hedge Funds Think About Chipotle Mexican Grill, Inc. (CMG)

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Because Chipotle Mexican Grill, Inc. (NYSE:CMG) has experienced a declination in interest from the aggregate hedge fund industry, it’s easy to see that there exist a select few hedgies that elected to cut their full holdings by the end of the third quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cut the biggest investment of the “upper crust” of funds watched by Insider Monkey, totaling an estimated $72.9 million in stock, and Ray Dalio’s Bridgewater Associates was right behind this move, as the fund said goodbye to about $17.4 million worth. These moves are interesting, as aggregate hedge fund interest fell by 8 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Chipotle Mexican Grill, Inc. (NYSE:CMG). These stocks are TransCanada Corporation (USA) (NYSE:TRP), AutoZone, Inc. (NYSE:AZO), Canadian Pacific Railway Limited (USA) (NYSE:CP), and Boston Scientific Corporation (NYSE:BSX). This group of stocks’ market caps are similar to CMG’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TRP 14 398464 -2
AZO 39 1220796 3
CP 39 3975017 -12
BSX 37 1479895 2

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $1769 million. That figure was $1100 million in CMG’s case. AutoZone, Inc. (NYSE:AZO) is the most popular stock in this table, while the least popular one is TransCanada Corporation (USA) (NYSE:TRP). With 28 bullish hedge fund positions, Chipotle Mexican Grill, Inc. (NYSE:CMG) is not the least nor the most popular stock in this group. It has not attracted much attention from investors, which may imply it is not a stock worth considering. Therefore, we’d rather spend our time focusing on stocks that hedge funds are collectively most fond of, and, in this case, AZO might be a better alternative.

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