Is Trimble Navigation Limited (TRMB) A Good Stock To Buy?

Now, key hedge funds were breaking ground themselves. Generation Investment Management, managed by David Blood and Al Gore, established a position in Trimble Navigation Limited (NASDAQ:TRMB). Generation Investment Management had $14.1 million invested in the company at the end of the quarter. Benjamin A. Smith’s Laurion Capital Management also initiated an $6.5 million position during the quarter. The other funds with new positions in the stock are Paul Tudor Jones’s Tudor Investment Corp, Joel Greenblatt’s Gotham Asset Management, and George Hall’s Clinton Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Trimble Navigation Limited (NASDAQ:TRMB) but similarly valued. These stocks are Genesis Energy, L.P. (NYSE:GEL), Graphic Packaging Holding Company (NYSE:GPK), Navient Corp (NASDAQ:NAVI), and Taubman Centers, Inc. (NYSE:TCO). This group of stocks’ market caps are similar to TRMB’s market cap.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $587 million. That figure was $274 million in TRMB’s case. Graphic Packaging Holding Company (NYSE:GPK) is the most popular stock in this table. On the other hand Genesis Energy, L.P. (NYSE:GEL) is the least popular one with only 7 bullish hedge fund positions. Even though Trimble Navigation Limited (NASDAQ:TRMB) is not the least popular stock in this group, its number of funds holding shares is below average. This does not necessarily mean that TRMB is not a good stock to buy and a more detailed analysis might reveal that it has some potential to gain ground. However, based on our extensive studies, we consider that the best approach is to focus on analyzing stocks that hedge funds are collectively the most fond of and, in this case, GPK may be a better alternative.