Greenlight Capital, an investment management company, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund returned (1.3%), net of fees and expenses, in the first quarter compared to a 7.5% return for the S&P 500 Index. Furthermore, the longs gained 9.9%, while its shorts lost 10.8% and macro lost 0.4%, net of fees and expenses during the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Greenlight Capital highlighted stocks like Green Brick Partners, Inc. (NYSE:GRBK) in the first quarter 2023 investor letter. Headquartered in Plano, Texas, Green Brick Partners, Inc. (NYSE:GRBK) is a homebuilding and land development company. On May 02, 2023, Green Brick Partners, Inc. (NYSE:GRBK) stock closed at $36.73 per share. One-month return of Green Brick Partners, Inc. (NYSE:GRBK) was 9.15%, and its shares gained 62.16% of their value over the last 52 weeks. Green Brick Partners, Inc. (NYSE:GRBK) has a market capitalization of $1.691 billion.
Greenlight Capital made the following comment about Green Brick Partners, Inc. (NYSE:GRBK) in its Q1 2023 investor letter:
“Starting with the good, Green Brick Partners, Inc. (NYSE:GRBK), which was our largest loser in 2022, was, conversely, our largest winner in the first quarter. The shares advanced from $24.23 to $35.06. Analysts have raised 2023 EPS estimates from $3.16 to $3.34. While that might not seem significant, it reflects a reversal of the downtrend in those estimates. With the market gaining confidence that the earnings expectations had fallen too far, the shares have rerated to just over 10x estimated 2023 earnings (but still less than 6x trailing earnings). GRBK has the highest gross margins, and nearly the highest ROE, in the industry. It also has an enviable land position in some of the most desirable markets. The $3.34/share earnings estimate for 2023 would be about a 15% ROE. If that is what a down year looks like, it’s hard to understand why a single digit P/E would be warranted.”
Green Brick Partners, Inc. (NYSE:GRBK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Green Brick Partners, Inc. (NYSE:GRBK) at the end of the fourth quarter which was 18 in the previous quarter.
We discussed Green Brick Partners, Inc. (NYSE:GRBK) in another article and shared the list of homebuilder stocks sorted by hedge fund sentiment. In addition, please check out our hedge fund investor letters Q1 2023 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.
