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Should You Consider Adding Cheesecake Factory Inc (CAKE) to Your Portfolio’s Menu?

Now, specific money managers have jumped into Cheesecake Factory Inc (NASDAQ:CAKE) headfirst. Caxton Associates LP, managed by Bruce Kovner, established the most valuable position in Cheesecake Factory Inc (NASDAQ:CAKE). Caxton Associates LP had $4.4 million invested in the company at the end of the quarter. Robert Pohly’s Samlyn Capital also made a $3.5 million investment in the stock during the quarter. The following funds were also among the new CAKE investors: Neil Chriss’ Hutchin Hill Capital, Adam Weiss’ Stillwater Investment Management, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Cheesecake Factory Inc (NASDAQ:CAKE) but similarly valued. We will take a look at B2Gold Corp (NYSEMKT:BTG), UniFirst Corp (NYSE:UNF), Whiting Petroleum Corp (NYSE:WLL), and Generac Holdings Inc. (NYSE:GNRC). All of these stocks’ market caps are closest to CAKE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BTG 12 72053 1
UNF 13 185810 -6
WLL 35 635862 -6
GNRC 16 159459 3

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 $263 million. That figure was $168 million in CAKE’s case. Whiting Petroleum Corp (NYSE:WLL) is the most popular stock in this table. On the other hand B2Gold Corp (NYSEMKT:BTG) is the least popular one with only 12 bullish hedge fund positions. Cheesecake Factory Inc (NASDAQ:CAKE) 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 really like. In this regard WLL might be a better candidate to consider a long position in.

Disclosure: None

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