What Makes Century Communities (CCS) a Good Investment?

Diamond Hill Capital, an investment management company, released its “Small-Mid Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q2, the market surged uniformly for the rest of the quarter following a sharp decline in April due to President Trump’s “Liberation Day” tariffs announcement. The portfolio returned 5.60% (gross) and 5.37% (net) compared to an 8.59% return for the Russell 2500 Index. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its second-quarter 2025 investor letter, Diamond Hill Small-Mid Cap Fund highlighted stocks such as Century Communities, Inc. (NYSE:CCS). Headquartered in Greenwood Village, Colorado, Century Communities, Inc. (NYSE:CCS) is a single-family attached and detached home builder. The one-month return of Century Communities, Inc. (NYSE:CCS) was 11.52%, and its shares lost 30.06% of their value over the last 52 weeks. On August 15, 2025, Century Communities, Inc. (NYSE:CCS) stock closed at $65.45 per share, with a market capitalization of $1.943 billion.

Diamond Hill Small-Mid Cap Fund stated the following regarding Century Communities, Inc. (NYSE:CCS) in its second quarter 2025 investor letter:

“Despite markets’ relatively sharp bounce following April’s downward volatility, we were able to initiate several new positions in the quarter at what we consider compelling valuations: Generac Holdings, Alaska Air Group, Knife River Corporation, Taseko Mines, Century Communities, Inc. (NYSE:CCS) and FTI Consulting.

Century Communities is a homebuilder — an industry that faces near-term challenges amid weaker consumer demand and higher interest rates. However, as shares trade at a sizeable discount to tangible book value, particularly given the company’s solid balance sheet and operating model, we capitalized on the opportunity to introduce a position in the quarter.”

In another article, we covered Century Communities, Inc. (NYSE:CCS) and shared the list of best breakout stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2025 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.