Mairs & Power, an investment advisor, released the “Mairs & Power Growth Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The market enjoyed a favorable environment in the third quarter due to modest economic growth, improving inflation trends, steady profit growth, and decreasing interest rates. The fund continued its positive quarterly returns, with 19.01% year-to-date appreciation, but trailed the 22.08% YTD returns for the S&P 500 Total Return (TR) index. Additionally, the Growth Fund beat its peer group according to the Morningstar Large Blend Category, which is up 18.92% YTD. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Mairs & Power Growth Fund highlighted stocks like The Toro Company (NYSE:TTC) in the Q3 2024 investor letter. Headquartered in Bloomington, Minnesota, The Toro Company (NYSE:TTC) designs, manufactures, markets, and sells professional turf maintenance equipment and services. The one-month return of The Toro Company (NYSE:TTC) was 4.91%, and its shares gained 1.64% of their value over the last 52 weeks. On November 22, 2024, The Toro Company (NYSE:TTC) stock closed at $85.11 per share with a market capitalization of $8.734 billion.
Mairs & Power Growth Fund stated the following regarding The Toro Company (NYSE:TTC) in its Q3 2024 investor letter:
“As they have done throughout the year, many of our core Industrial stocks continued to languish, dragging down overall stock selection. The Toro Company (NYSE:TTC), another long-term holding of the Fund, has been hit particularly hard. Best known for its zero-turn and walk-behind lawn mowers, Toro dominates the golf, landscape and grounds, and underground drilling businesses. The golf business is as successful as it has been in years, and its underground business should benefit from the Infrastructure Bill that calls for immense investments in broadband, charging stations, power grid, and water/sewer infrastructure. The stock has been hurt by a weak housing market, which should rebound with lower interest rates. As such, we’ve been adding to our position.”
A close up of a golf course mower, showcasing the intricate precision of its components.
The Toro Company (NYSE:TTC) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held The Toro Company (NYSE:TTC) at the end of the third quarter which was 33 in the previous quarter. In the third quarter The Toro Company’s (NYSE:TTC) net sales increased nearly 7% to $1.16 billion. While we acknowledge the potential of The Toro Company (NYSE:TTC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In addition, please check out our hedge fund investor letters Q3 2024 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.