Here’s the Smart Money’s Take On J Alexanders Holdings Inc (JAX)

We view hedge fund activity in the stock as being unfavorable, but in this case there was only a single hedge fund selling its entire position: Millennium Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified JAX as a viable investment and initiated a position in the stock.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as J Alexanders Holdings Inc (NYSE:JAX) but similarly valued. We will take a look at Kopin Corporation (NASDAQ:KOPN), Zagg Inc (NASDAQ:ZAGG), Cutera, Inc. (NASDAQ:CUTR), and CAI International Inc (NYSE:CAI). This group of stocks’ market caps are closest to JAX’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $34 million in JAX’s case. Cutera, Inc. (NASDAQ:CUTR) is the most popular stock in this table. On the other hand Kopin Corporation (NASDAQ:KOPN) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks J Alexanders Holdings Inc (NYSE:JAX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None