NVR (NVR) Benefitted from Interest Rate Regulation

Diamond Hill Capital, an investment management company, released its “Small-Mid Cap Strategy” fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The strategy returned 7.59% net of fees in the fourth quarter compared to a 7.43% return for the Russell 2500 Index. For the calendar year 2022, the strategy returned -13.54% compared to the Russell 2500 Index’s return of -18.37%. Healthcare and technology holdings contributed to the relative performance of the strategy in the quarter while energy and financials holdings detracted from performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Diamond Hill Small-Mid Cap Strategy highlighted stocks like NVR, Inc. (NYSE:NVR) in the Q4 2022 investor letter. Headquartered in Reston, Virginia, NVR, Inc. (NYSE:NVR) is a home builder. On February 21, 2023, NVR, Inc. (NYSE:NVR) stock closed at $5,018.23 per share. One-month return of NVR, Inc. (NYSE:NVR) was -0.04%, and its shares gained 0.44% of their value over the last 52 weeks. NVR, Inc. (NYSE:NVR) has a market capitalization of $16.306 billion.

Diamond Hill Small-Mid Cap Strategy made the following comment about NVR, Inc. (NYSE:NVR) in its Q4 2022 investor letter:

“Other top contributors included NVR, Inc. (NYSE:NVR), BOK Financial and Lancaster Colony Corporation. US homebuilder NVR benefited from first stabilizing, then decreasing interest rates in Q4. NVR is also helped relative to peers by its net cash balance sheet and low-risk, option-centric approach to procuring land, which holds up well in both good and bad housing markets.”

NVR, Inc. (NYSE:NVR) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 39 hedge fund portfolios held NVR, Inc. (NYSE:NVR) at the end of the fourth quarter which was 34 in the previous quarter.

We discussed NVR, Inc. (NYSE:NVR) in another article and shared the list of biggest construction companies in the world. 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.