Heartland Advisors, an investment management company, released its “Heartland Small Cap Value Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the strategy posted a 6.21% (Net of Advisory Fees) gain compared to an 8.42% gain for the Russell 2000 Value Index. Security selection primarily in Financials, Real Estate, Information Technology, and Industrials helped the strategy’s performance through 2022. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Heartland Small Cap Value Strategy highlighted stocks like Century Communities, Inc. (NYSE:CCS) in the Q4 2022 investor letter. Headquartered in Greenwood Village, Colorado, Century Communities, Inc. (NYSE:CCS) is a home builder. On March 9, 2023, Century Communities, Inc. (NYSE:CCS) stock closed at $59.23 per share. One-month return of Century Communities, Inc. (NYSE:CCS) was -6.70%, and its shares lost 3.83% of their value over the last 52 weeks. Century Communities, Inc. (NYSE:CCS) has a market capitalization of $1.882 billion.
Heartland Small Cap Value Strategy made the following comment about Century Communities, Inc. (NYSE:CCS) in its Q4 2022 investor letter:
“Century Communities, Inc. (NYSE:CCS), a homebuilder based in Denver, Colorado, hasn’t been immune. Sell-side analysts now believe CCSs’ 2023 sales will fall to 2020 levels, which is 33% below what they expected at the start of 2022. The stock is down around 38% year to date. We believe this is an example of short-term fear providing an excellent opportunity for the patient long-term investor. CCS is trading at just 78% of book value, thus providing a margin of safety.
Meanwhile, we are constructive on the supply-demand prospects for CCS’s core product. Approximately 80% of CCS’s sales are made to entry-level buyers. Supply of starter homes is tight after nearly a decade of below-average building activity. At the same time, millennials are reaching their first-time homebuyer age and forming households, providing a long-term buoy for demand.
Century’s management team has guided the company to more than 20 straight years of profitability. We think they should be able to successfully navigate a housing slowdown and close its discount to book value over time.”
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Century Communities, Inc. (NYSE:CCS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 16 hedge fund portfolios held Century Communities, Inc. (NYSE:CCS) at the end of the fourth quarter which was 18 in the previous quarter.
We discussed Century Communities, Inc. (NYSE:CCS) in another article and shared Diamond Hill Small-Mid Cap Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q4 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.
