Moon Capital Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be seen here. Stock prices generally continued their decline in the first quarter, with the tech-heavy Nasdaq Composite posting the largest loss among the three major U.S. indices. The fund’s stock portfolio held up well, declining approximately one-half percent. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Moon Capital Management mentioned Green Brick Partners, Inc. (NASDAQ:GRBK) and explained its insights for the company. Founded in 2006, Green Brick Partners, Inc. (NASDAQ:GRBK) is a Plano, Texas-based diversified homebuilding and land development company with a $974.0 million market capitalization. Green Brick Partners, Inc. (NASDAQ:GRBK) delivered a -36.73% return since the beginning of the year, while its 12-month returns are down by -24.51%. The stock closed at $19.19 per share on April 12, 2022.
Here is what Moon Capital Management has to say about Green Brick Partners, Inc. (NASDAQ:GRBK) in its Q1 2022 investor letter:
“When we added LGIH to the portfolio in February, we only purchased a two percent position in the stock, knowing that our intention was to add an additional two percent to the industry if homebuilder prices remained attractive or weakened any further. In late March, we allocated another two percent of our stock portfolio to Green Brick Partners (GRBK), a homebuilder and land developer.
Similar to LGIH, Green Brick trades at a discount to its publicly traded homebuilder comparables (which trade at a 50 percent discount to the S&P 500), despite having a much better growth profile and much higher returns on equity.
Green Brick’s land development operation (its original, legacy business) acquires and develops raw land, which includes entitlement and land readiness – things like grading, sewage, roads and lot planning. This process takes several years, given the complexities of zoning and permitting…” (Click here to see the full text)
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Our calculations show that Green Brick Partners, Inc. (NASDAQ:GRBK) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Green Brick Partners, Inc. (NASDAQ:GRBK) was in 12 hedge fund portfolios at the end of the first quarter of 2022, compared to 16 funds in the previous quarter. Green Brick Partners, Inc. (NASDAQ:GRBK) delivered a -26.78% return in the past 3 months.
In April 2022, we published an article that includes Green Brick Partners, Inc. (NASDAQ:GRBK) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
