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.

Here is What Hedge Funds Think About GrubHub Inc (GRUB)

The elite funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary to beat the market. That’s why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at GrubHub Inc (NYSE:GRUB) from the perspective of those elite funds.

GrubHub Inc (NYSE:GRUB) has experienced a decrease in activity from the world’s largest hedge funds in recent months. At the end of this article we will also compare GRUB to other stocks, including La Quinta Holdings Inc (NYSE:LQ), BGC Partners, Inc. (NASDAQ:BGCP), and Gold Fields Limited (ADR) (NYSE:GFI) to get a better sense of its popularity.

Follow Grubhub Inc. (NYSE:GRUB)
Trade (NYSE:GRUB) Now!

In the eyes of most stock holders, hedge funds are seen as underperforming, old investment tools of yesteryear. While there are more than an 8000 funds in operation at present, Our experts hone in on the top tier of this group, about 700 funds. It is estimated that this group of investors command the lion’s share of the hedge fund industry’s total asset base, and by observing their highest performing investments, Insider Monkey has found a number of investment strategies that have historically exceeded Mr. Market. Insider Monkey’s small-cap hedge fund strategy beat the S&P 500 index by 12 percentage points a year for a decade in their back tests.

Keeping this in mind, we’re going to analyze the fresh action regarding GrubHub Inc (NYSE:GRUB).

What have hedge funds been doing with GrubHub Inc (NYSE:GRUB)?

At Q3’s end, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a slump of 23% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Luxor Capital Group, managed by Christian Leone, holds the most valuable position in GrubHub Inc (NYSE:GRUB), worth some $205.4 million and comprising 4.7% of its 13F portfolio. Coming in second is Joho Capital, managed by Robert Karr, which holds a $76.6 million position; 21.9% of its 13F portfolio is allocated to the company. Some other professional money managers that are bullish comprise Josh Resnick’s Jericho Capital Asset Management, Vivek Mehta and Aaron Husock’s ShearLink Capital and Roberto Mignone’s Bridger Management.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.