Is it Wise to Invest in Dream Finders Homes (DFH)?

Argosy Investors, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. The fund’s 2021 performance was 24.3% in select accounts. The S&P 500 by comparison returned 28.7%. Argosy Investors ended the year with 33% of its portfolio in cash and equivalents and dipped as low as 15% at the end of the 2nd quarter last year. Otherwise, cash hovered between 25-35% of the total account value for the fund. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Argosy Investors, in its Q4 2021 investor letter, mentioned Dream Finders Homes, Inc. (NASDAQ: DFH) and discussed its stance on the firm. Founded in 2008, Dream Finders Homes, Inc. is a Jacksonville, Florida-based homebuilder company with a $1.9 billion market capitalization, and is currently spearheaded by its CEO, Patrick Zalupski. DFH delivered a 10.03% return since the beginning of the year, while its 12-month returns are down by -14.60%. The stock closed at $21.40 per share on March 08, 2022.

Here is what Argosy Investors has to say about Dream Finders Homes, Inc. in its Q4 2021 investor letter:

“I again added to our DFH position at prices around $16.50, increasing our position by approximately 30%. DFH now represents a mid-single digit % of assets and may go higher. I believe DFH earns a high Return on Capital and is valued at less than 10x 2022 earnings. The business can be deeply cyclical, as all homebuilders are, but I believe DFH is the best place to be and has some nice growth ahead.

Our calculations show that Dream Finders Homes, Inc. (NASDAQ: DFH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. DFH was in 4 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 5 funds in the previous quarter. Dream Finders Homes, Inc. (NASDAQ: DFH) delivered a 13.65% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on DFH in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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