Greenlight Capital, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. For 2022, the fund returned 36.6% net of fees and expenses compared to an 18.1% loss for the S&P 500 Index. 2022 was an exceptionally good year for the strategy as the market environment was favorable, and the firm expects attractive, absolute, and risk-adjusted returns to be achieved over the long term. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Greenlight Capital highlighted stocks like Green Brick Partners, Inc. (NYSE:GRBK) in the Q4 2022 investor letter. Headquartered in Plano, Texas, Green Brick Partners, Inc. (NYSE:GRBK) is a homebuilding and land development operator. On January 17, 2023, Green Brick Partners, Inc. (NYSE:GRBK) stock closed at $28.19 per share. One-month return of Green Brick Partners, Inc. (NYSE:GRBK) was 15.11%, and its shares gained 18.10% of their value over the last 52 weeks. Green Brick Partners, Inc. (NYSE:GRBK) has a market capitalization of $1.298 billion.
Greenlight Capital made the following comment about Green Brick Partners, Inc. (NYSE:GRBK) in its Q4 2022 investor letter:
“In 2022, our long book was profitable. The only significant losers we had were Green Brick Partners, Inc. (NYSE:GRBK) and Danimer Scientific (DNMR).
GRBK had a very strong operating year offset by a difficult forward-looking macro outlook due to higher interest rates. GRBK is expected to earn $6.02 in 2022 compared to beginning of the year estimates of $4.29. However, 2023 consensus estimates have fallen from $4.62 to $3.17 per share. As a result, the shares fell from $30.33 to $24.23 during the year. We believe the shares will do better in 2023, once the market determines that estimates have fallen sufficiently to take into account the slowdown in the housing market. At that point, we believe the focus will shift to determining the correct multiple on trough earnings. Over the intermediate term, the company remains well positioned as a low-cost operator in demographically attractive markets, with an extremely favorable land position and a conservative balance sheet.”
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Green Brick Partners, Inc. (NYSE:GRBK) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 18 hedge fund portfolios held Green Brick Partners, Inc. (NYSE:GRBK) at the end of the third quarter, which was 15 in the previous quarter.
We discussed Green Brick Partners, Inc. (NYSE:GRBK) in another article and shared Moon Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.
