Should You Consider Buying Five Point Holdings (FPH) Shares?

Third Avenue Management, an investment management firm, published its “Small-Cap Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Third Avenue Small-Cap Value Fund (the “Fund”) rose 5.53% during the fourth quarter of 2021 versus a rise of 4.36% for the Fund’s most relevant benchmark, the Russell 2000 Value Index (the “Index”). In 2021, the Fund was up 25.84% versus a rise of 28.27% for the Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Third Avenue Management Small-Cap Value Fund, in its Q4 2021 investor letter, mentioned Five Point Holdings, LLC (NYSE: FPH) and discussed its stance on the firm. Five Point Holdings, LLC is an Irvine, California-based holding company with a $395.5 million market capitalization. FPH delivered a -13.76% return since the beginning of the year, while its 12-month returns are down by -15.19%. The stock closed at $5.64 per share on February 4, 2022.

Here is what Third Avenue Management Small-Cap Value Fund has to say about Five Point Holdings, LLC in its Q4 2021 investor letter:

“Single-Family (4.0% of assets): Five Point Holdings and Tri-Pointe Holdings own highly attractive land assets in supply constrained geographies. Both companies have taken advantage of the single-family housing boom by monetizing assets at attractive prices despite a challenged cost environment. Tri-Pointe and Five Point’s exceptional asset quality coupled with insatiable demand for residential housing should allow them to grow intrinsic value despite higher costs and supply chain delays industrywide.”

Our calculations show that Five Point Holdings, LLC (NYSE: FPH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. FPH was in 8 hedge fund portfolios at the end of the third quarter of 2021, compared to 11 funds in the previous quarter. Five Point Holdings, LLC (NYSE: FPH) delivered a -23.47% return in the past 3 months.

In July 2021, we also shared another hedge fund’s views on FPH 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.