Should You Invest in Lennar Corporation (LEN)?

Baron Funds, an investment management company, released its “Baron Real Estate Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 4.86% (Institutional Shares) compared to a 4.99% decline for its primary benchmark, the MSCI USA IMI Extended Real Estate Index. At the same time, the fund outperformed the MSCI US REIT Index, which fell 10.28% in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like Lennar Corporation (NYSE:LEN) in the Q3 2022 investor letter. Based in Miami, Florida, Lennar Corporation (NYSE:LEN) is a home builder. On November 18, 2022, Lennar Corporation (NYSE:LEN) stock closed at $84.71 per share. One-month return of Lennar Corporation (NYSE:LEN) was 8.80% and its shares lost 23.14% of their value over the last 52 weeks. Lennar Corporation (NYSE:LEN) has a market capitalization of $24.118 billion.

Baron Funds made the following comment about Lennar Corporation (NYSE:LEN) in its Q3 2022 investor letter:

Lennar Corporation (NYSE:LEN) is the second-largest U.S. homebuilder with competitive scale advantages (including materials procurement and labor), an increasingly capital-light business model, a strong balance sheet, a strategic and forward-looking focus on technology investments, and an exceptional management team.

It is valued at only 1.0 times tangible book value versus its more typical historical valuation range of 1.5 to 2.5 times tangible book value.”

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Lennar Corporation (NYSE:LEN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Lennar Corporation (NYSE:LEN) at the end of the third quarter which was 47 in the previous quarter.

We discussed Lennar Corporation (NYSE:LEN) in another article and shared Third Avenue Management’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.