Jack in the Box Inc. (JACK): Are Hedge Funds Right About This Stock?

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Seeing as Jack in the Box Inc. (NASDAQ:JACK) has faced declining sentiment from the aggregate hedge fund industry, logic holds that there is a sect of fund managers who sold off their positions entirely heading into Q4. Interestingly, Clifford Fox’s Columbus Circle Investors dropped the biggest investment of the 700 funds followed by Insider Monkey, worth an estimated $50.4 million in stock, and Joel Greenblatt’s Gotham Asset Management was right behind this move, as the fund dumped about $18.1 million worth. These moves are important to note, as total hedge fund interest was cut by 4 funds heading into Q4.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Jack in the Box Inc. (NASDAQ:JACK) but similarly valued. These stocks are Aspen Insurance Holdings Limited (NYSE:AHL), Telecom Argentina S.A. (ADR) (NYSE:TEO), CVR Refining LP (NYSE:CVRR), and Vista Outdoor Inc (NYSE:VSTO). This group of stocks’ market valuations are closest to JACK’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AHL 22 201309 2
TEO 11 86033 -2
CVRR 10 130928 3
VSTO 20 813685 -2

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $308 million. That figure was $163 million in JACK’s case. Aspen Insurance Holdings Limited (NYSE:AHL) is the most popular stock in this table with 22 funds reporting stakes, while CVR Refining LP (NYSE:CVRR) is the least popular one. Compared to these stocks Jack in the Box Inc. (NASDAQ:JACK) 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.

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