Greenlight Capital, an investment management firm, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the Greenlight Capital funds returned 1.1% net of fees and expenses, compared to 5.9% for the S&P 500 index. The firm experienced a peaceful quarter due to prudent positioning and modest equity beta exposure. Greenlight Capital’s both longs and shorts rose marginally less than the market. The macro portfolio saw a solid quarter due to the significant increase in gold prices. The portfolio was lost on equities index hedging. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Greenlight Capital highlighted stocks like Green Brick Partners, Inc. (NYSE:GRBK) in the Q3 2024 investor letter. Green Brick Partners, Inc. (NYSE:GRBK) is a homebuilding and land development company. The one-month return of Green Brick Partners, Inc. (NYSE:GRBK) was -5.08%, and its shares gained 97.50% of their value over the last 52 weeks. On October 22, 2024, Green Brick Partners, Inc. (NYSE:GRBK) stock closed at $76.09 per share with a market capitalization of $3.409 billion.
Greenlight Capital stated the following regarding Green Brick Partners, Inc. (NYSE:GRBK) in its Q3 2024 investor letter:
“In addition to gold, Green Brick Partners, Inc. (NYSE:GRBK) was the other significant winner during the quarter. GRBK reported quarterly earnings of $2.32 per share, which beat analyst estimates of $1.77 per share. The company continues to lead the industry in gross margins and has distinguished itself from its peers, who are increasingly focused on appearing to be “land light.” GRBK believes that being land light is very expensive at the gross margin level. Rather than pay high rates to third-party off-balance sheet land bankers, GRBK owns most of its land and lots while maintaining a very low-leveraged investment-grade balance sheet. As a result, it earns all of the development profits in addition to the homebuilding profits. Despite being “land heavy,” the result is a return on equity that is near the top of the industry. Even more exciting, GRBK has had a very successful period of land acquisition, and as a result the prospects for it to continue delivering industry-leading margins remain promising. This quarter, GRBK shares advanced from $57.24 to $83.52.”
An aerial view of a residential construction project with workers and machinery at work.
Green Brick Partners, Inc. (NYSE:GRBK) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Green Brick Partners, Inc. (NYSE:GRBK) at the end of the second quarter which was 21 in the previous quarter. In the second quarter, Green Brick Partners, Inc. (NYSE:GRBK) reported a record quarterly EPS of $2.32, up 42.3% year over year. While we acknowledge the potential of Green Brick Partners, Inc. (NYSE:GRBK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Green Brick Partners, Inc. (NYSE:GRBK) and shared top stocks to buy from David Einhorn’s stock portfolio. In addition, please check out our hedge fund investor letters Q3 2024 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.