Here’s Why Lennar (LEN) had a Great Quarter

Smead Capital Management, an investment management company, released its Smead Value Fund third quarter 2022 investor letter. A copy of the same can be downloaded here. For the recent quarter, the Smead Value Fund (SMVLX) lost 1.82% versus a loss of 4.88% for the formerly formidable S&P 500 Index and 5.62% in the Russell 1000 Value Index. The same is true for the year-to-date loss of 14.51% for the fund against losses in the S&P 500 of 23.87% and the Russell 1000 Value of 17.75%. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Smead Value Fund mentioned Lennar Corporation (NYSE:LEN) and explained its insights for the company. Founded in 1954, Lennar Corporation (NYSE:LEN) is a Miami, Florida-based home construction company with a $20.5 billion market capitalization. Lennar Corporation (NYSE:LEN) delivered a -37.77% return since the beginning of the year, while its 12-month returns are down by -29.28%. The stock closed at $72.29 per share on October 19, 2022.

Here is what Smead Value Fund has to say about Lennar Corporation (NYSE:LEN) in its Q3 2022 investor letter:

“Two things are very noticeable right off the top. First, sometimes you have to be happy losing less in a bear market environment so that you have more of your capital to grow in the next bull market. We are never really happy losing money. Second, 2022 is likely to be our third year of existence as a fund to lose money for the year. This year would join 2008 and 2018 in this undistinguished category. Our top-performing stocks in the quarter includes Lennar (NYSE:LEN). Oil and gas have been the best game in the stock market town this year and it was a pleasant surprise to see home builders pick up even with dour news on interest rates and the economy.”

Pixabay / Public Domain

Our calculations show that Lennar Corporation (NYSE:LEN) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Lennar Corporation (NYSE:LEN) was in 47 hedge fund portfolios at the end of the second quarter of 2022, compared to 50 funds in the previous quarter. Lennar Corporation (NYSE:LEN) delivered a -8.69% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.


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