Bretton Capital Management, an investment management company, released the “Bretton Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Bretton Fund returned 1.44% in Q4 2025 compared to 2.66% for the S&P 500 Index. In 2025, the Fund returned 11.58% compared to 17.88% for the Index. Although the market fluctuates daily between excitement and concern regarding a potential bubble in artificial intelligence, the firm views the overall market as not in bubble territory at this stage but is modestly elevated. Given the Fund’s long-term perspective, it is acceptable to reduce more speculative elements of the AI boom, which might resemble a bubble, even if this leads to a temporary lag during strong market phases. The Fund is focusing on areas of value that will provide good returns over the long term. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Bretton Fund emphasized stocks such asNVR, Inc. (NYSE:NVR). Headquartered in Reston, Virginia, NVR, Inc. (NYSE:NVR) is a home builder that operates through Homebuilding and Mortgage Banking segments. On March 04, 2026, NVR, Inc. (NYSE:NVR) stock closed at $7,251.27 per share. One-month return of NVR, Inc. (NYSE:NVR) was -9.86%, and its shares lost 3.25% over the past 52 weeks. NVR, Inc. (NYSE:NVR) has a market capitalization of $20.589 billion.
Bretton Fund stated the following regarding NVR, Inc. (NYSE:NVR) in its fourth quarter 2025 investor letter:
“When interest rates first shot up in 2022, home builders NVR, Inc. (NYSE:NVR) and Dream Finders Homes surprisingly held up relatively well. People in existing homes who were locked into low rates didn’t want to move, which left less competition for new homes. But as home builders ran through this demand, continued high rates—and hopes for imminently lower rates—left potential buyers on the sidelines. The result was a weak year for housing. Existing home sales as a percentage of all homes was one of the lowest on record.
This won’t last forever. There’s a lot of pent-up demand for housing: prices remain high; inventory and new builds are low compared to historical levels; and new households continue to be formed. We’re not exactly sure when the housing market will unfreeze, but we expect these investments to perform well once they do. NVR and Dream Finders returned -10% and-27%, respectively, while earnings per share declined 18% and an estimated 29%.”
NVR, Inc. (NYSE:NVR) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 50 hedge fund portfolios held NVR, Inc. (NYSE:NVR) at the end of the fourth quarter, up from 46 in the previous quarter. While we acknowledge the risk and potential of NVR, Inc. (NYSE:NVR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVR, Inc. (NYSE:NVR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In addition, please check out our hedge fund investor letters Q4 2025 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.
