Should Investors Buy the Dip in Green Brick Partners (GRBK) Stock?

If you are looking for the best ideas for your portfolio you may want to consider some of Greenlight Capital’s top stock picks. Greenlight Capital, an investment management firm, is bullish on Green Brick Partners Inc. (NASDAQ:GRBK) stock. In its Q4 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Green Brick Partners Inc. (NASDAQ:GRBK) stock. Green Brick Partners Inc. (NASDAQ:GRBK) is a diversified homebuilding and land development company. The stock is up 4.5% since the Greenlight Capital’s pitch in January 2020. On a year-to-date basis, Green Brick Partners Inc. (NASDAQ:GRBK) stock has risen by 12.8%.

On January 21, 2020, Greenlight Capital had released its Q4 2019 Investor Letter. Greenlight Capital said that Green Brick Partners Inc. (NASDAQ:GRBK) stock is poised to grow in 2020. This isn’t the first time Greenlight Capital talked about Green Brick Partners favorably either. The investment firm has been a long time Green Brick Partners bull. Last year, we shared Greenlight Capital’s bullish Green Brick Partners thesis in this article.

In 2019, the Greenlight Capital Fund recorded a return of 13.8% as compared to 31.5% of the S&P 500 Index.

Let’s take a look at comments made by Greenlight Capital about Green Brick Partners Inc. (NASDAQ:GRBK) in the letter.

“GRBK is a diversified homebuilding and land development company. The company operates in growing markets in Atlanta, GA; Colorado Springs, CO; Dallas, TX; Houston, TX; and Vero Beach, FL. GRBK has more than tripled its revenue since going public in 2014, while maintaining industry-leading high margins and low debt-to-capital. It has achieved this via organic growth, accretive acquisitions, launching its internal brand (Trophy Signature Homes), starting title and mortgage subsidiaries, and reducing its costs through national account contracts available to it as a function of GRBK’s scale. Management is disciplined and resourceful. GRBK rebounded from a brief slowdown in late 2018 and the company executed better than planned, leading to a 59% share price increase in 2019.4”

In Q1 2020, the number of bullish hedge fund positions on Green Brick Partners Inc. (NASDAQ:GRBK) stock increased by about 12% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with 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 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 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

At Insider Monkey we scour multiple sources to uncover the next great investment idea. There is a lot of volatility in the markets and this presents amazing investment opportunities from time to time. For example, this trader claims to deliver juiced up returns with one trade a week, so we are checking out his highest conviction idea. A second trader claims to score lucrative profits by utilizing a “weekend trading strategy”, so we look into his strategy’s picks. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. We recently recommended several stocks partly inspired by legendary Bill Miller’s investor letter. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 in February after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:

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