Is it Worthy to Invest in Toll Brothers (TOL)?

Baron Funds, an asset management company, released its “Baron Real Estate Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Real Estate Fund (the “Fund”) declined 20.62% (Institutional Shares) in the second quarter of 2022, underperforming its primary benchmark, the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”), which declined 17.12%. The Fund underperformed the MSCI US REIT Index (the “REIT Index”), which declined 17.16%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In its Q2 2022 investor letter, Baron Real Estate Fund mentioned Toll Brothers, Inc. (NYSE:TOL) and explained its insights for the company. Founded in 1967, Toll Brothers, Inc. (NYSE:TOL) is a Fort Washington, Pennsylvania-based building company with a $4.8 billion market capitalization. Toll Brothers, Inc. (NYSE:TOL) delivered a -40.54% return since the beginning of the year, while its 12-month returns are down by -28.91%. The stock closed at $43.04 per share on September 14, 2022.

Here is what Baron Real Estate Fund has to say about Toll Brothers, Inc. (NYSE:TOL) in its Q2 2022 investor letter:

Toll Brothers, Inc. is the leading luxury homebuilder in the U.S. Toll Brothers’ shares corrected more than 41% in the first six months of 2022. Its valuation is only 0.9 times tangible book value versus a long-term average of approximately 1.4 times book value and a peak multiple of approximately 2.0 times book value.”

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Our calculations show that Toll Brothers, Inc. (NYSE:TOL) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Toll Brothers, Inc. (NYSE:TOL) was in 29 hedge fund portfolios at the end of the second quarter of 2022, compared to 29 funds in the previous quarter. Toll Brothers, Inc. (NYSE:TOL) delivered a -3.02% return in the past 3 months.

In September 2022, we published an article that includes Toll Brothers, Inc. (NYSE:TOL) in 5 Best Housing Stocks to Buy Now. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.