Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000® Index in the quarter with positive absolute results across all sectors. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Diamond Hill Capital, in its Q1 2021 investor letter, mentioned Green Brick Partners, Inc. (NASDAQ: GRBK), and shared their insights on the company. Green Brick Partners, Inc. is a Plano, Texas-based operative builders operation company that currently has a $1.1 billion market capitalization. Since the beginning of the year, GRBK delivered a -2.53% return, while its 12-month gains are up by 104.76%. As of May 21, 2021, the stock closed at $22.38 per share.
Here is what Diamond Hill Capital has to say about Green Brick Partners, Inc. in its Q1 2021 investor letter:
“Another bottom contributor, homebuilder Green Brick, appears to be facing challenges in getting homes built fast enough against a backdrop of still record-low mortgage interest rates and rising homeownership among millennials—a case of too much demand causing some delays in closing. We believe this issue should eventually pass, and Green Brick remains well positioned thanks in part to its operations in prime real estate locations in Dallas and Atlanta.”
PI/Shutterstock.com
Our calculations show that Green Brick Partners, Inc. (NASDAQ: GRBK) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Green Brick Partners, Inc. was in 18 hedge fund portfolios, compared to 12 funds in the fourth quarter of 2020. GRBK delivered a 12.41% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.
