Greenlight Capital Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 5.9% for the quarter, underperforming its benchmark, the S&P 500 Index which returned 8.9% in the same quarter. You should check out Greenlight Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q3 2020 Investor Letter, Greenlight Capital highlighted a few stocks and Green Brick Partners Inc. (NASDAQ:GRBK) is one of them. Green Brick Partners Inc. (NASDAQ:GRBK) operates as a homebuilding and land development company. In the last one year, Green Brick Partners Inc. (NASDAQ:GRBK) stock gained 92.7% and on January 11th it had a closing price of $22.02. Here is what Greenlight Capital said:
“Green Brick Partners (GRBK) was the primary driver of this quarter’s results. The shares advanced from $11.85 to $16.10. Housing appears to be a major beneficiary from the pandemic, as low interest rates combined with an expanded preference for single-family detached housing has spurred demand. GRBK is well-positioned in secularly growing markets including Dallas, Atlanta, Colorado Springs and Vero Beach. In the second quarter, the company earned $0.66 per share, shattering consensus estimates of $0.42. The company’s record backlog and strong order rate bode well for future earnings. Current consensus of $1.88 per share this year suggests EPS growth of over 60% year-over-year. We believe the shares remain deeply undervalued at 9x estimates, as business momentum continues to accelerate.”
Greenlight Capital has been a long time Green Brick Partners Inc. (NASDAQ:GRBK) bull. In 2019, we shared Greenlight Capital’s bullish Green Brick Partners thesis in this article.
In Q3 2020, the number of bullish hedge fund positions on Green Brick Partners Inc. (NASDAQ:GRBK) stock decreased by about 38% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in GRBK’s growth potential. Our calculations showed that Green Brick Partners Inc. (NASDAQ:GRBK) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
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Disclosure: None. This article is originally published at Insider Monkey.