Wedgewood Partners, an investment management company, released its “Focused SMID Cap Strategy” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund returned -5.3% compared to a return of -2.8% for the Russell 2500 Index. Since inception, the fund returned 8.2% compared to 5.4% for its benchmark index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Wedgewood Partners highlighted stocks like The Toro Company (NYSE:TTC) in the Q3 2022 investor letter. Headquartered in Bloomington, Minnesota, The Toro Company (NYSE:TTC) is a global manufacturer of professional and residential equipment. On November 3, 2022, The Toro Company (NYSE:TTC) stock closed at $104.22 per share. One-month return of The Toro Company (NYSE:TTC) was 10.83% and its shares gained 5.42% of their value over the last 52 weeks. The Toro Company (NYSE:TTC) has a market capitalization of $10.86 billion.
Wedgewood Partners made the following comment about The Toro Company (NYSE:TTC) in its Q3 2022 investor letter:
“The Toro Company (NYSE:TTC) contributed favorably to performance during the quarter. The Company benefitted from pricing actions it took earlier in the year, offsetting rising input cost inflation. An important proof-point we consider when evaluating the competitive advantage of any business is whether margins can be maintained (or expanded), especially during periods of inflation. In addition, Toro continues to see robust demand for its professional and residential products. The Company has a backlog in its professional segment that is at its highest level since the year began, whereas residential products grew +7% on strong year and 2-year comparisons and despite many “home” categories across big-box retailers witnessing declines.
The Toro Corporation has an illustrious history stretching back to its founding in 1914. Many of us first encountered The Toro Company in the rite of passage when our parents finally relented in allowing us to cut the grass for the first time when we were barely taller than the lawn mower handle. From the Company’s humble beginning building tractor engines for the Bull Tractor Company in Bloomington, Milwaukee, the Company has methodically grown into the diversified conglomerate of today that today possesses industry leading brand awareness, market share, technological prowess, and profitability.
We are always enamored with a company’s beginnings, so herewith is the short story of The Toro Corporation’s storied history. The “Toro” name was chosen given its first relationship with The Bull Tractor Company, which according to Company documents was the #1 brand of farm tractors in 1914. Shortly after, in 1919, the Company created the mechanized golf course equipment industry with their invention of The Toro Standard Golf Machine…” (Click here to read the full text)
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The Toro Company (NYSE:TTC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held The Toro Company (NYSE:TTC) at the end of the second quarter, which was 24 in the previous quarter.
We discussed The Toro Company (NYSE:TTC) in another article and shared the list of stocks billionaire Ken Fisher may never sell. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.