Diamond Hill Capital: “NVR is Well Positioned to Outperform Over the Long Run”

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Large Cap Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. During a volatile quarter, Diamond Hill Large Cap Fund held up better than the Russell 1000 Index by a decent margin in Q1. After a strong rebound in 2021, global GDP growth is expected to moderate in 2022. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Diamond Hill Large Cap Fund mentioned NVR, Inc. (NYSE:NVR) and explained its insights for the company. Founded in 1980, NVR, Inc. (NYSE:NVR) is a Reston, Virginia-based home construction company with a $14.4 billion market capitalization. NVR, Inc. (NYSE:NVR) delivered a -25.74% return since the beginning of the year, while its 12-month returns are down by -9.05%. The stock closed at $4,387.66 per share on July 13, 2022. 

Here is what Diamond Hill Large Cap Fund has to say about NVR, Inc. (NYSE:NVR) in its Q1 2022 investor letter:

“NVR is a homebuilder and mortgage bank. Its stock, along with other housing stocks, came under pressure in Q1 as mortgage rates rose and concerns that continued interest rate increases will cause a slowdown in new home demand. These near-term headwinds have not impacted our long-term investment thesis, and we believe NVR is well positioned to outperform over the long run.”

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Our calculations show that NVR, Inc. (NYSE:NVR) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. NVR, Inc. (NYSE:NVR) was in 39 hedge fund portfolios at the end of the first quarter of 2022, compared to 35 funds in the previous quarter. NVR, Inc. (NYSE:NVR) delivered a 1.20% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on NVR, Inc. (NYSE:NVR) 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.