Why Toll Brothers Inc (TOL) is Trading Higher on Tuesday?

With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Greenhaven Associates, managed by Edgar Wachenheim, initiated the largest position in Toll Brothers Inc (NYSE:TOL). Greenhaven Associates had $49.1 million invested in the company at the end of the quarter. Robert Hockett’s Covalent Capital Partners also initiated a $9.1 million position during the quarter. The other funds with brand new TOL positions are Charles Davidson’s Wexford Capital, D. E. Shaw’s D E Shaw, and Doug Gordon, Jon Hilsabeck and Don Jabro’s Shellback Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Toll Brothers Inc (NYSE:TOL) but similarly valued. We will take a look at Reliance Steel & Aluminum (NYSE:RS), Spirit Realty Capital Inc (NYSE:SRC), Brown & Brown, Inc. (NYSE:BRO), and Zions Bancorporation (NASDAQ:ZION). All of these stocks’ market caps match TOL’s market cap.

As you can see these stocks had an average of 22.75 hedge funds with bullish positions and the average amount invested in these stocks was $416 million. That figure was $447 million in TOL’s case. Zions Bancorporation (NASDAQ:ZION) is the most popular stock in this table. On the other hand Brown & Brown, Inc. (NYSE:BRO) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Toll Brothers Inc (NYSE:TOL) 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