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Hedge Funds Are Betting On Toll Brothers Inc (TOL)

As one would reasonably expect, some big names have jumped into Toll Brothers Inc (NYSE:TOL) headfirst. Columbus Circle Investors, managed by Clifford Fox, created the most valuable position in Toll Brothers Inc (NYSE:TOL). Columbus Circle Investors had $10.1 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also made a $7.7 million investment in the stock during the quarter. The other funds with brand new TOL positions are Benjamin A. Smith’s Laurion Capital Management, Philip Hempleman’s Ardsley Partners, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s now take a look at hedge fund activity in other stocks similar to Toll Brothers Inc (NYSE:TOL). These stocks are Cadence Design Systems Inc (NASDAQ:CDNS), Middleby Corporation (NASDAQ:MIDD), UGI Corp (NYSE:UGI), and Reinsurance Group of America Inc (NYSE:RGA). This group of stocks’ market valuations is closest to Toll Brothers Inc (NYSE:TOL)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CDNS 28 1483917 -3
MIDD 20 566957 -3
UGI 16 348448 -2
RGA 16 302110 -2

As you can see, these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $675 million. That figure was $646 million in Toll Brothers Inc (NYSE:TOL)’s case. Cadence Design Systems Inc (NASDAQ:CDNS) is the most popular stock in this table. On the other hand, UGI Corp (NYSE:UGI) is the least popular one with only 16 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.

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