Should You Avoid The Toro Company (TTC)?

The Toro Company (NYSE:TTC) was in 15 hedge funds’ portfolio at the end of the first quarter of 2013. TTC shareholders have witnessed a decrease in activity from the world’s largest hedge funds lately. There were 15 hedge funds in our database with TTC holdings at the end of the previous quarter.

The Toro Company (NYSE:TTC)

According to most traders, hedge funds are assumed to be underperforming, outdated financial tools of years past. While there are more than 8000 funds trading at the moment, we choose to focus on the crème de la crème of this club, about 450 funds. It is widely believed that this group oversees most of all hedge funds’ total capital, and by monitoring their best equity investments, we have spotted a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

Equally as integral, optimistic insider trading activity is a second way to break down the financial markets. As the old adage goes: there are a number of incentives for an executive to drop shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many empirical studies have demonstrated the impressive potential of this method if you understand where to look (learn more here).

Consequently, we’re going to take a look at the latest action encompassing The Toro Company (NYSE:TTC).

What does the smart money think about The Toro Company (NYSE:TTC)?

At Q1′s end, a total of 15 of the hedge funds we track were bullish in this stock, a change of 0% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their stakes substantially.

When looking at the hedgies we track, Ken Fisher’s Fisher Asset Management had the biggest position in The Toro Company (NYSE:TTC), worth close to $42.1 million, accounting for 0.1% of its total 13F portfolio. Coming in second is Chuck Royce of Royce & Associates, with a $30.2 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Phill Gross and Robert Atchinson’s Adage Capital Management, Ken Griffin’s Citadel Investment Group and Ric Dillon’s Diamond Hill Capital.

Judging by the fact that The Toro Company (NYSE:TTC) has experienced falling interest from the entirety of the hedge funds we track, logic holds that there exists a select few fund managers who were dropping their full holdings at the end of the first quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cut the biggest stake of the “upper crust” of funds we watch, worth about $1.9 million in stock., and Ian Simm of Impax Asset Management was right behind this move, as the fund sold off about $1.3 million worth. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading The Toro Company (NYSE:TTC)?

Insider purchases made by high-level executives is most useful when the company in focus has seen transactions within the past half-year. Over the latest six-month time period, The Toro Company (NYSE:TTC) has experienced 1 unique insiders purchasing, and 10 insider sales (see the details of insider trades here).

With the returns shown by our time-tested strategies, everyday investors must always watch hedge fund and insider trading activity, and The Toro Company (NYSE:TTC) is no exception.

Click here to learn why you should track hedge funds

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!