We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. Interestingly, Lee Ainslie’s Maverick Capital cut the biggest investment of the 700 funds studied by Insider Monkey, totaling an estimated $57.3 million in stock. Gabriel Plotkin’s fund, Melvin Capital Management, also sold off its stock, about $34.4 million worth.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Jack in the Box Inc. (NASDAQ:JACK) but similarly valued. We will take a look at Flowers Foods, Inc. (NYSE:FLO), DuPont Fabros Technology, Inc. (NYSE:DFT), Bank of Hawaii Corporation (NYSE:BOH), and Avis Budget Group Inc. (NASDAQ:CAR). This group of stocks’ market values resemble JACK’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $387 million. That figure was $423 million in JACK’s case. Avis Budget Group Inc. (NASDAQ:CAR) is the most popular stock in this table. On the other hand Bank of Hawaii Corporation (NYSE:BOH) is the least popular one with only 10 bullish hedge fund positions. Jack in the Box Inc. (NASDAQ:JACK) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CAR might be a better candidate to consider taking a long position in.