Should You Follow Hedge Funds Into Toro Co (TTC)?

Consequently, key hedge funds were leading the bulls’ herd. Millennium Management, managed by Israel Englander, initiated the most outsized position in Toro Co (NYSE:TTC). Millennium Management had $12.5 million invested in the company at the end of the quarter. Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital also made a $4.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Matthew Tewksbury’s Stevens Capital Management, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Jim Simons’ Renaissance Technologies.

Let’s also examine hedge fund activity in other stocks similar to Toro Co (NYSE:TTC). These stocks are AutoNation, Inc. (NYSE:AN), Acadia Healthcare Company Inc (NASDAQ:ACHC), National Fuel Gas Co. (NYSE:NFG), and Dolby Laboratories, Inc. (NYSE:DLB). All of these stocks’ market caps are similar to TTC’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $552 million. That figure was $271 million in TTC’s case. AutoNation, Inc. (NYSE:AN) is the most popular stock in this table. On the other hand National Fuel Gas Co. (NYSE:NFG) is the least popular one with only 21 bullish hedge fund positions. Toro Co (NYSE:TTC) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AN might be a better candidate to consider a long position in.

Disclosure: None