Diamond Hill Capital Sees Bright Future in Green Brick Partners (GRBK)

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000® Index in the quarter, delivering nearly a 2% positive return against the index’s negative return and adding to year-to-date outperformance.  You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Diamond Hill Small Cap Fund, in its Q3 2021 investor letter, mentioned Green Brick Partners, Inc. (NASDAQ: GRBK) and discussed its stance on the firm. Green Brick Partners, Inc. is a Plano, Texas-based operative builders operation company with a $1.3 billion market capitalization. GRBK delivered an 18.55% return since the beginning of the year, while its 12-month returns are up by 17.68%. The stock closed at $27.22 per share on November 12, 2021.

Here is what Diamond Hill Small Cap Fund has to say about Green Brick Partners, Inc.  in its Q3 2021 investor letter:

“Homebuilder Green Brick Partners has benefited from strong housing demand leading to higher prices. However, rising interest rates, as we saw in Q3, tend to be an industry-wide headwind, just as supply chain challenges delayed home closings, pushing back revenue to later quarters. Longer term, our thesis on Green Brick remains unchanged. We believe it is one of the best positioned small-cap housing companies, with attractive real estate, a strong balance sheet and a strong, shareholder-aligned management team that has been a wise allocator of capital.”

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Based on our calculations, Green Brick Partners, Inc. (NASDAQ: GRBK) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. GRBK was in 14 hedge fund portfolios at the end of the first half of 2021, compared to 18 funds in the previous quarter. Green Brick Partners, Inc. (NASDAQ: GRBK) delivered an 8.32% return in the past 3 months.

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