Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the second quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 5 years and analyze what the smart money thinks of Texas Roadhouse Inc (NASDAQ:TXRH) based on that data and determine whether they were really smart about the stock.

Texas Roadhouse Inc (NASDAQ:TXRH) has experienced a decrease in enthusiasm from smart money recently. Texas Roadhouse Inc (NASDAQ:TXRH) was in 25 hedge funds’ portfolios at the end of June. The all time high for this statistics is 27. There were 27 hedge funds in our database with TXRH holdings at the end of March. Our calculations also showed that TXRH isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings and see the video for a quick look at the top 5 stocks). Video: Watch our video about the top 5 most popular hedge fund stocks.

Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 58 percentage points since March 2017 (see the details here). We were also able