Tootsie Roll Industries, Inc. (TR): Are Hedge Funds Right About This Stock?

Due to the fact that Tootsie Roll Industries, Inc. (NYSE:TR) has encountered falling interest from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of hedge funds who were dropping their entire stakes last quarter. Interestingly, Joel Greenblatt’s Gotham Asset Management got rid of the biggest investment of the “upper crust” of funds watched by Insider Monkey, worth about $0.3 million in stock. Adam Wright and Gary Kohler’s fund, Blue Clay Capital, also dumped its call options, about $0.1 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Tootsie Roll Industries, Inc. (NYSE:TR) but similarly valued. We will take a look at Knight Transportation (NYSE:KNX), WP Glimcher Inc (NYSE:WPG), Armstrong World Industries, Inc. (NYSE:AWI), and Washington Real Estate Investment Trust (NYSE:WRE). This group of stocks’ market caps are similar to TR’s market cap.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $374 million. That figure was $94 million in TR’s case. Armstrong World Industries, Inc. (NYSE:AWI) is the most popular stock in this table. On the other hand Knight Transportation (NYSE:KNX) is the least popular one with only 9 bullish hedge fund positions. Tootsie Roll Industries, Inc. (NYSE:TR) 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 AWI might be a better candidate to consider taking a long position in.

Disclosure: None