In this article, we will take a detailed look at Greenhaven Associates: Top 10 Stocks to Invest in.
Edgar “Ed” Wachenheim III is the founder, CEO, and chairman of Greenhaven Associates, a hedge fund management company that manages over $7 billion in investments. He serves as the vice chairman of the board of Central National-Gottesman, the chairman of WNET’s board, a trustee at the Museum of Modern Art, and a life trustee who previously chaired both the executive and investment committees of the New York Public Library. Additionally, he is a trustee emeritus and former vice chair at Skidmore College, as well as a trustee emeritus and past board president of Rye Country Day School. A notable figure in the investment community, Ed’s most recent, prominent achievement is the publishing of his book “Common Stocks and Common Sense” in 2016.
Wachenheim’s book, published by Wiley in April 2016, details his investment strategies and provides insight into his career as a successful value investor. In “Common Stocks and Common Sense”, he explains his approach to investing in undervalued companies that face a low probability of permanent loss, with a goal of achieving an annual return between 15% and 20%. He typically holds stocks for multiple years until they appreciate as expected and makes very few changes to his holdings in the shorter term. Even when his investment thesis proves incorrect, Wachenheim argues that his investments still tend to generate positive returns, given that the stock market has historically returned an average of 9% to 10% annually. His strong emphasis on downside risk and capital preservation is a hallmark of his investment philosophy. He also contributed a chapter to the 2017 book “Harriman’s New Book of Investing Rules”, and a second edition of his own book was released in 2022.
Greenhaven Associates was founded in 1987 as a branch of Central National-Gottesman, one of the largest global marketers and distributors of paper, packaging, wood, and metals. Wachenheim invests with a long-term time horizon of three to four years, disregarding short-term performance, analyst predictions, and hedge fund sentiment. This disciplined approach seems to work in Greenhaven Associates’ favor, as the hedge fund has achieved an impressive average annual return of approximately 19% between 1988 and 2017.
Beyond his career in finance, Wachenheim has been deeply involved in philanthropy and nonprofit leadership. He served on the Skidmore College board from 1993 to 2001, where three of his children studied, and later became vice chair and chair of the investment committee until 2003. He has also been a long-time supporter of Williams College, his own alma mater, where a new science center is named after him. Additionally, he is a life trustee of the New York Public Library, where the Trustees Room has been named in his honor. Wachenheim chaired the board of WNET, the PBS affiliate, from 2017 to 2022, having joined the board a year earlier.
His extensive philanthropic work includes serving on the boards of UJA-Federation of New York, the New York Foundation (1990–1999), and the Arthur Ross Foundation. He and his wife oversee the Sue & Edgar Wachenheim Foundation, a charitable organization with reported assets of $438 million in 2022. The foundation has directed significant contributions to cultural and educational institutions, including Williams College, Skidmore College, the Museum of Modern Art, WNET, and the New York Public Library.
According to its 13F filing for Q4 2024, Greenhaven Associates held stocks worth a total value of over $6.7 billion with stakes in 22 companies. Notably, the hedge fund’s recent portfolio modification has revealed that over 65% of its hedge fund is invested in just four stocks.
Image by Sergei Tokmakov Terms.Law from Pixabay
Our Methodology
The stocks discussed below were picked from Greenhaven Associates’ 13F filings for the fourth quarter of 2024. They have been compiled in the ascending order of Greenhaven Associates’ stake in them as of December 31, 2024. To provide readers with a more holistic analysis of each stock, we have included the hedge fund sentiment regarding each company using data from over 900 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds show interest in? The reason is simple: our research has shown that we can outperform the market by imitating the latest top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Greenhaven Associates: Top 10 Stocks to Invest in
10. Lear Corporation (NYSE:LEA)
Number of Hedge Fund Holders as of Q3: 36
Greenhaven Associates’ Equity Stake: $174.46 Million
Operating in 37 countries worldwide, Lear Corporation (NYSE:LEA) is an American manufacturer that specializes in automotive seating and electrical systems. Founded in 1917 as American Metal Products in Detroit, Michigan, the company initially focused primarily on producing tubular, welded, and stamped assemblies for the aircraft and automobile industries. Through a series of acquisitions from the 1980s to the 2010s, Lear Corporation (NYSE:LEA) expanded to provide complete interior automotive systems, including seating, electrical systems, flooring, interior trim, and instrument panels to OEM auto manufacturers.
The company generates revenue through several key streams: automotive seating systems, electrical systems, and collaborations with strategic suppliers. It also earns from technical proposals and bids for contracts with automakers, as well as digital channels like its website and LinkedIn. These diverse revenue sources reflect the company’s broad role in providing essential components and innovative solutions across the global automotive industry. Famous for the multiple awards it won in an automotive seat quality study in 2022, Lear Corporation (NYSE:LEA) continues to be a global leader in automotive innovations.
On February 6, 2025, Lear Corporation (NYSE:LEA) announced its Q4 revenue of $5.71 billion which showed a year-over-year decline of 2.17%. The company’s EPS was announced as $2.94, surpassing estimates of $2.58 by $0.36.
Greenhaven Associates owned over 1.84 million shares of the company as of Q4 2024, with a total value of $174.46 million. Moreover, the fund increased its stake in Lear Corporation (NYSE:LEA) by 2% during the fourth quarter of 2024, which suggests a positive hedge fund sentiment about the stock.
The company has partnered with General Motors to introduce a new seating technology, ComfortMax Seat, in select GM vehicles starting in Q2 2025. Lear’s President and CEO, Ray Scott, emphasized the importance of this collaboration in enhancing customer satisfaction and manufacturing efficiency. This integration marks a key development in the company’s efforts to redefine automotive seating.
Diamond Hill Select Strategy mentioned Lear Corporation (NYSE:LEA) in its Q2 2024 investor letter. Here is what the firm has to say:
“Among our bottom individual Q2 contributors were Lear Corporation (NYSE:LEA) and Regal Rexnord. Leading global automotive seating manufacturer Lear underperformed in Q2 as slowing electric vehicle (EV) adoption weighed on the company’s E-Systems segment in the near term. Further, rising dealer inventories are contributing to some concerns about the near-term demand outlook — though it’s worth noting dealer inventories remain below pre-COVID levels.”
9. Avnet, Inc. (NASDAQ:AVT)
Number of Hedge Fund Holders as of Q3: 26
Greenhaven Associates’ Equity Stake: $207.34 Million
Avnet, Inc. (NASDAQ:AVT), a distributor of electronic components headquartered in Phoenix, Arizona, was founded by Charles Avnet in 1921. Initially based in Manhattan’s Radio Row, the company became incorporated in 1955 and began trading on the New York Stock Exchange in 1961, later switching to Nasdaq in 2018 under the ticker AVT. Over the years, the company has adapted to technological changes, offering engineering and supply chain expertise to help customers accelerate, scale, and extend the lifecycle of their designs while providing solutions to complex challenges with global capabilities.
In late 2016, Avnet, Inc. (NASDAQ:AVT) purchased Premier Farnell Limited, a global distributor of technology products and services for electronic and industrial systems. Commonly known as Farnell, the subsidiary markets itself as an Avnet company and operates under the brands Farnell in Europe, Newark in North America, and element14 in Asia Pacific. It offers hardware kits, IoT products, development software, and an online community to support the entire life cycle of its products. In terms of current revenue streams, Avnet, Inc. (NASDAQ:AVT) generates revenue from its electronic components business, its e-commerce site, Farnell, and other emerging opportunities.
The most recent financial statements of Avnet, Inc. (NASDAQ:AVT) were reported on Wednesday, January 29, 2025. The company’s reported revenue for its second quarter ended December 28, 2024, was $5.66 billion, compared with $6.20 billion in the prior year quarter, representing a decrease of 8.72%. Its net income for the quarter was $87.25 million, reflecting a year-over-year decrease of 26%. Operating income was $155.33 million, compared with $236.28 million for the same quarter in the previous fiscal year. It reported earnings per share for the quarter to be $1.00 against $1.31 EPS for the same period last year. However, the cash dividends paid per common share for the quarter ended December 28, 2024, were $0.33 and totaled $29 million against the $0.31 from the same period the previous year.
In the Q2 2025 earnings call, the CEO of Avnet, Philip Gallagher, explained that Avnet, Inc. (NASDAQ:AVT)’s reported revenue, net income, and operating income were lower compared to the same quarter in the fiscal year 2024 due to a challenging semiconductor cycle marked by excess inventory. He highlighted that while the company remains optimistic about long-term industry recovery, the environment is currently unusually complicated by geopolitical factors and high inventory levels. Kenneth Jacobson, the company’s CFO, added that around 75% of the gross margin decline was due to a shift in the sales mix toward Asia. He was also optimistic about the company’s performance and expected its gross margin to normalize over the next few quarters. According to Jacobson, the company is focusing on higher-margin opportunities, such as demand creation, IP&E products, and digital sales, while also managing expenses and leveraging its broader customer base to drive market share growth. Despite the current financial challenges, the confidence expressed by the CEO and CFO, along with their strategic justification for future growth, positions Avnet as a strong contender in the portfolio.
8. Arrow Electronics, Inc. (NYSE:ARW)
Number of Hedge Fund Holders as of Q3: 28
Greenhaven Associates’ Equity Stake: $215.48 Million
Arrow Electronics, Inc. (NYSE:ARW) originated in 1935 as Arrow Radio, a Manhattan-based retail store founded by Maurice Goldberg that sold used radios and components. By the 1940s, the business expanded into brand-new radio and home entertainment products, establishing franchises with RCA and Cornell Dubilier. Eventually, it was formally incorporated as Arrow Electronics, Inc. in 1946.
Presently a Fortune 500 company based in Centennial, Colorado, Arrow Electronics, Inc. (NYSE:ARW) is a leading distributor of electronic components and enterprise computing solutions. The company provides supply chain and value-added services to original equipment manufacturers, contract manufacturers, value-added resellers, and managed service providers. On the 2024 Fortune 500 list, Arrow Electronics was ranked 133rd based on total revenue. Moreover, Arrow Electronics has consistently maintained a strong industry position and is famous for being on Fortune’s “World’s Most Admired Companies” list for 12 consecutive years.
Arrow Electronics, Inc. (NYSE:ARW) announced its Q4 revenue of $7.28 billion which, although lower than the $7.85 billion revenue for the same quarter in 2023, surpassed estimates of $7.06 billion by 3.17%. The company’s non-GAAP EPS was announced as $2.94, surpassing estimates of $2.68 by almost 11%. In the Q4 2024 earnings call, CEO Sean Kerins emphasized that, through the semiconductor industry correction and a shifting market landscape, Arrow Electronics has managed to expand its product offerings, customer base, and ECS strategy, focusing on hybrid cloud and AI solutions to drive growth in 2025. Its strong performance and financial resilience despite industry challenges have reinforced its well-deserved position as a top stock in Greenhaven Associates’ portfolio.
Greenhaven Associates owned over 1.9 million shares of the company as of Q4 2024, with a total value of $215.48 million, representing 3.18% of Wachenheim’s portfolio. Moreover, the fund increased its stake in Arrow Electronics, Inc. (NYSE:ARW) by 2% during the fourth quarter of 2024, which suggests a positive hedge fund sentiment about the stock. Overall, by the end of the third quarter, 28 funds out of the 900 funds tracked by Insider Monkey held stakes in Arrow Electronics worth over $1 billion, down from 33 funds by the end of Q2.
Bonhoeffer Capital Management stated the following regarding Arrow Electronics, Inc. (NYSE:ARW) in its Q3 2024 investor letter:
“In our Q1 2024 letter, our case study was our electronic component distributor, Arrow Electronics, Inc. (NYSE:ARW). Arrow’s model is to modestly grow earnings (5-6% per year) and buyback stock at a rate of about 10%. Below is the updated RoIIC model for Arrow:
Given the cyclicality of Arrow’s earnings, it is better to look at the longer term average RoIICs and averages. In this case, the 5-yr average FCF/Equity is 20% and 4-year RoIIC is 83%. As to forward estimates of growth and earnings below is the current estimated growth to 2029 with declining growth after 2026. This results in a 5-year growth rate of 20% consistent with the past 5-year growth rate and higher than the 10-year growth rate. The rationale for the higher growth rate than the 10-year growth rate is increases in component demand from AI and internet of things. If the past is repeated into the future, the EPS growth rate will be in the low teens. Below is an updated 5-year DCF for Arrow Electronics…” (Click here to read the full text)
7. Oshkosh Corporation (NYSE:OSK)
Number of Hedge Fund Holders as of Q3: 33
Greenhaven Associates’ Equity Stake: $242.63 Million
Oshkosh Corporation (NYSE:OSK), headquartered in Oshkosh, Wisconsin, is a global manufacturer specializing in purpose-built vehicles and equipment, such as specialty trucks, military vehicles, fire apparatus, and access equipment. With operations across 19 countries including Australia, Canada, China, France, and Romania, the company operates through 12 brands and four main segments: access, vocational, defense, and corporate. It owns several subsidiaries, including Pierce Manufacturing for fire apparatus and JLG Industries for lift equipment. Employing around 18,000 people across 125 facilities in 19 countries, Oshkosh Corporation focuses on advancing vehicle and equipment technology to enhance safety and efficiency for its customers.
Oshkosh Corporation (NYSE:OSK) reported its quarterly revenue for Q4 2024 as $2.62 billion, surpassing analyst estimates of $2.42 billion by 8.47% and demonstrating year-over-year growth of 6%. The company boasted high fourth-quarter earnings for 2024, totaling adjusted EPS of $2.58 and beating a consensus estimate of $2.18 by $0.40. According to Oshkosh Corporation CEO John Pfeifer, the company’s strong fourth-quarter results were driven by revenue growth of nearly 20% in the Vocational segment.
Former hedge fund manager Jim Cramer expressed surprise at Oshkosh Corporation’s solid earnings report for the quarter that ended December 31, 2024, and called it a “great American company”. During Q4 2024, Greenhaven Associates enhanced its position in Oshkosh Corporation (NYSE:OSK) by 1% and held a stake worth over $242.63 million. The company accounted for 3.58% of Edgar Wachenheim’s portfolio.
At the end of Q3 2024, 33 hedge funds tracked by Insider Monkey held stakes in Oshkosh Corporation (NYSE:OSK), showing improvement from 28 hedge funds in the previous quarter. These stakes hold a consolidated value of roughly $560.67 million.
Aristotle Capital Value Equity Strategy mentioned Oshkosh Corporation (NYSE:OSK) in its Q2 2024 investor letter. Here is what the firm has to say:
“Oshkosh Corporation (NYSE:OSK), a manufacturer of purpose‐built vehicles worldwide, was a main detractor during the quarter. Despite a decline in share price, the company has seen fundamental improvements and strong demand for its vehicles, including an increasing backlog of orders for fire trucks. As such, revenue for Oshkosh’s Vocational segment was up over 35% year‐over‐year. We believe this segment should be able to expand its margins, particularly as the company was awarded a contract to produce the “Next Generation Delivery Vehicle” for the U.S. Postal Service, which should begin to ramp up at the beginning of next year. This contract could generate in excess of $6 billion in revenue for the company. Furthermore, we continue to believe that Oshkosh is a high‐quality business that should be able to create innovative equipment and gain market share across segments. This includes its aerial work platforms as global safety standards increase around the world.”
Oshkosh Corporation (NYSE:OSK) stands out as a solid investment due to its consistent profitability and impressive earnings growth. Over the past three years, the company has achieved a compound annual EPS growth of 19%, demonstrating its ability to generate sustained shareholder value. Additionally, its annual revenue increased by 11% to almost $11 billion, reinforcing its strong market position. With stable EBIT margins and a solid financial foundation, Oshkosh is a great stock for investors seeking long-term growth and stability.
6. D.R. Horton, Inc. (NYSE:DHI)
Number of Hedge Fund Holders as of Q3: 69
Greenhaven Associates’ Equity Stake: $513.3 Million
Based in Arlington, Texas, D.R. Horton, Inc. (NYSE:DHI) is the largest homebuilder in the U.S. by volume since 2002, operating in 113 markets across 33 states. Founded in 1978 by Donald R. Horton, the company went public in 1992 and has expanded through multiple significant acquisitions, including Continental Homes and Cambridge Homes. It offers four brands—D.R. Horton, Emerald Homes for luxury buyers, Express Homes for entry-level buyers, and Freedom Homes for active adults. Ranked among the largest U.S. corporations by revenue, the company experienced a leadership transition in 2024 following the passing of its founder, with David V. Auld appointed as executive chairman.
The company is the sixth-largest holding in Ed Wachenheim’s stock portfolio. Greenhaven Associates owns over 3.67 million shares of the company as of Q4 2024 which constitutes 7.59% of the hedge fund’s holding.
D.R. Horton, Inc. (NYSE:DHI) demonstrated strong financial performance for the quarter ended December 2024. The reported revenue of $7.61 billion for the quarter against consensus estimates of $7.08 billion indicates solid business growth. The earnings per share (EPS) for the quarter were a solid $2.61, which exceeded analyst estimates of $2.36 by a significant 11% and is a clear positive.
D.R. Horton, Inc. (NYSE:DHI) is a solid stock backed by strong institutional confidence, with 85% of shares held by major financial institutions, including The Vanguard Group as the largest shareholder as of Q4 2024. This high level of institutional ownership reflects credibility and stability, as these investors typically maintain investments in companies with solid fundamentals and promising performance. While D.R. Horton trades slightly below its industry peers, it remains a fairly priced investment with a high beta, offering opportunities for strategic entry. Despite moderate near-term earnings growth projections of 9.9%, the company’s dominant market position and long-term resilience make it a great addition to any portfolio.
Parnassus Core Equity Fund stated the following regarding D.R. Horton, Inc. (NYSE:DHI) in its Q3 2024 investor letter:
“D.R. Horton, Inc. (NYSE:DHI), a leading homebuilder, saw its shares rise amid confidence that a lower-rate environment would lead to more affordable housing prices and a corresponding increase in home buying. Further, investors were impressed by the company’s execution and management’s intention to deploy cash to a stock buyback.”
5. PulteGroup, Inc. (NYSE:PHM)
Number of Hedge Fund Holders as of Q3: 33
Greenhaven Associates’ Equity Stake: $608.12 Million
PulteGroup, Inc. (NYSE:PHM), founded in 1956 by William J. Pulte in Michigan, is one of the largest homebuilders in the United States. The company started out in 1950 when an 18-year-old William J. Pulte began building and selling houses, and eventually went public in 1972. It expanded through major acquisitions, including DiVosta in 1998, Del E. Webb Construction Company in 2001, and the homebuilding operations of American West Homes in 2019. In 2014, PulteGroup relocated its headquarters to Atlanta, Georgia, and as of 2023, it ranks as the third-largest home construction company in the country, having built nearly 750,000 homes as of Q4 2025.
PulteGroup, Inc. (NYSE:PHM) operates in 40 major cities across the United States and serves a diverse range of homebuyers through its well-established brands, including Pulte, Centex, Del Webb, DiVosta, American West, and John Wieland Homes and Neighborhoods. Under the leadership of CEO Ryan Marshall since 2016, the company continues to expand its market presence and maintain its strong reputation in the residential construction industry.
PulteGroup, Inc. (NYSE:PHM) has established itself as a leading homebuilder by prioritizing efficiency, strategic planning, and high-quality home designs. Under the leadership of CEO Ryan Marshall, the company underwent a transformation after the 2008 financial crisis as it shifted its focus from volume to maximizing return on invested capital. In recent years, the company has consistently increased earnings and maintained strong financial performance: its stock price has surged from $20 per share to $130 since Marshall took over as CEO in 2016, reflecting the company’s disciplined approach to capital allocation and operational excellence.
In an interview in November 2024, Marshall stated that the U.S. housing market remains significantly undersupplied, contributing to rising home prices and an increasing median age for first-time buyers. Regardless, PulteGroup, Inc. (NYSE:PHM) has successfully expanded through both acquisitions and organic growth. Its commitment to innovation, financial discipline, and delivering high-value homes positions the company as a top performer in the industry, making it a strong investment choice.
PulteGroup, Inc. (NYSE:PHM) has proven its strength as a top-performing stock with impressive financial results in Q4 2024. The company reported $4.92 billion in revenue, reflecting a strong 14.63% year-over-year growth and exceeding consensus estimates by nearly 6%. Additionally, its EPS of $3.50 outperformed expectations by $0.23, showcasing its ability to deliver consistent profitability. With strong financial momentum and a solid market position, PulteGroup remains a great stock for investors seeking stability and growth in the homebuilding sector. Greenhaven Associates owns over 5.58 million shares of the company as of Q4 2024 which constitutes 8.99% of the hedge fund’s holding.
4. Toll Brothers, Inc. (NYSE:TOL)
Number of Hedge Fund Holders as of Q3: 54
Greenhaven Associates’ Equity Stake: $697.32 Million
Founded in 1967 in Pennsylvania by brothers Robert and Bruce Toll and headquartered in Fort Washington, Pennsylvania, Toll Brothers, Inc. (NYSE:TOL) is a prominent American homebuilding company specializing in building residential and commercial properties across the United States. Operating in over 60 cities across 24 states, in 2024, Toll Brothers celebrated a decade of recognition on the Fortune World’s Most Admired Companies list. Additionally, Chairman and CEO Douglas C. Yearley, Jr. was honored as one of Barron’s Top 25 CEOs the same year. The company has also received the prestigious Builder of the Year award from Builder magazine and remains the only homebuilder to earn Professional Builder magazine’s Builder of the Year title twice.
Toll Brothers, Inc. (NYSE:TOL) is known for its high-end homes, with an average selling price of $844,400, varying by region. Additionally, the company has expanded beyond single-family homes to offer townhouses, condominiums, luxury apartments, and student housing. Moreover, Toll Brothers provides services in mortgage financing, insurance, home automation, security, and landscaping, making it a comprehensive player in the housing market. It also operates Toll Integrated Systems, which manages a manufacturing, assembly, and distribution center in Pennsylvania, further enhancing its efficiency in home construction and delivery. The company’s strategic approach to diversification and high-quality developments has solidified its reputation as a leading luxury homebuilder in the United States.
Greenhaven Associates owned roughly 5.54 million shares of the company as of Q4 2024, with a total value of over $697.32 million. During the fourth quarter of 2024, the fund decreased its stake in Toll Brothers, Inc. (NYSE:TOL) by 1%. However, by the end of the September quarter, 54 funds out of the 900 funds tracked by Insider Monkey held stakes in Toll Brothers worth over $1.73 billion, up from 46 funds by the end of Q2 which suggests an overall positive hedge fund sentiment about the stock.
The most recent earnings results of Toll Brothers, Inc. (NYSE:TOL) were reported on December 10th, 2024, for the fourth quarter of its fiscal year 2024 which ended in October. It beat the consensus estimate of $4.35 by $0.28, reporting earnings per share for the quarter to be $4.63 against $4.11 EPS for the same period in 2023. October marked the end of the fourth consecutive quarter of this fiscal year wherein the company beat analyst expectations for its EPS. The quarterly net income was reported as $475.41 million, up 6.71% compared to $445.5 million for the same quarter last year. Operating income was $635.02 million, up 9.52% from the same quarter of 2023.
Baron Real Estate Fund stated the following regarding Toll Brothers, Inc. (NYSE:TOL) in its Q2 2024 investor letter:
“We trimmed our position in Toll Brothers, Inc. (NYSE:TOL), America’s leading luxury homebuilder, during the second quarter following exceptionally strong share price appreciation over the last year and the Fund’s resulting large position size. Toll Brothers remains the largest position in the Fund, and we continue to be enthusiastic about the company’s long-term prospects.
Our meetings with CEO Doug Yearley and other key members of the company’s management confirm our view that the long-term prospects remain compelling. We believe Toll Brothers has the ability to grow its community count of homes by approximately 10% per year as the company continues to gain market share against its mostly smaller private competitors who lack scale advantages, brand awareness, and access to attractively priced financing. Further, Toll Brothers has a long runway for multi-decade growth as it targets the fastest growing income demographic in the U.S. – 16 million households with annual incomes of at least $200,000. According to the U.S. Census Bureau (September 2023), households with over $200,000 in annual income have grown approximately 10 times faster than all U.S. households in the last 10 years. Currently, Toll Brothers has captured only 0.06% of this important demographic group. For additional reasons we remain optimistic on our investment in Toll Brothers, please see the “Top contributors” section of our first quarter 2024 shareholder letter.”
3. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders as of Q3: 88
Greenhaven Associates’ Equity Stake: $1.19 Billion
Citigroup Inc. (NYSE:C) is a leading multinational financial services company headquartered in New York City, formed in 1998 through the merger of Citicorp and Travelers. As the third-largest banking institution in the United States, Citi is part of the nation’s “Big Four” banks alongside JPMorgan Chase, Bank of America, and Wells Fargo. Recognized as a systemically important financial institution by the Financial Stability Board, it ranked 36th on the Fortune 500 and 24th on the Forbes Global 2000 list in 2023. Citigroup Inc. (NYSE:C) operates a vast global network spanning 180 countries, serving 85% of Fortune 500 companies and managing daily transactions worth approximately $5 trillion.
Citi operates through two primary divisions: Institutional Clients Group (ICG) and Personal Banking and Wealth Management (PBWM). ICG provides investment and corporate banking services, treasury and trade solutions, securities services, and custodian banking, while PBWM includes Citibank’s retail banking operations and credit card services. The company’s global reach, extensive financial solutions, and strong market presence have solidified its position as one of the leaders in the banking industry.
Ed Wachenheim holds roughly 16.87 million shares of Citigroup Inc. (NYSE:C) as of Q4 2024, which represents 17.56% of his portfolio. Insider Monkey saw that 88 hedge funds out of the 900 hedge funds held stakes in the company as of the end of Q3 2024 as opposed to 85 in Q2 which suggests an overall positive hedge fund sentiment about the stock.
Under Jane Fraser’s leadership, Citigroup Inc. (NYSE:C) demonstrated strong performance in 2024, promoting over 31,000 employees as part of its efforts to retain top talent amid a major restructuring. The bank achieved revenue growth across all five of its main divisions in 2024, with corporate and investment banking surging by 32%. However, with continued cost-cutting and strategic adjustments, the company is making steady progress toward its long-term profitability goals, reinforcing its strength in the financial sector.
Citigroup’s Q4 revenue was $19.58 billion with a year-on-year growth of 12%. Its adjusted operating income of $3.80 million increased 280.69% as compared to the same quarter in 2023. Moreover, the company’s EPS for Q4 2024 was announced as $1.36, which was $0.12 more than the estimated EPS of $1.24.
Diamond Hill Capital Long-Short Fund mentioned Citigroup Inc. (NYSE:C) in its first quarter 2024 investor letter. Here is what it said:
“Other top Q1 contributors included Meta Platforms, Citigroup Inc. (NYSE:C) and Walt Disney. Banking and financial services company Citigroup’s restructuring efforts are ongoing, and it continues remediating regulatory issues and building capital in anticipation of increased requirements. The company expects to see expenses fall meaningfully in the second half of 2024, bolstering the outlook from here.”
2. Lennar Corporation (NYSE:LEN)
Number of Hedge Fund Holders as of Q3: 68
Greenhaven Associates’ Equity Stake: $1.25 Billion
Headquartered in Miami-Dade County, Florida, Lennar Corporation (NYSE:LEN) is the second-largest home construction company in the United States as of 2023. Originally founded as F&R Builders in 1954 by Leonard Miller and Arnold Rosen, the company was later renamed Lennar in 1971. It became a public company listed on the New York Stock Exchange in 1972 and has since expanded significantly. Lennar Corporation (NYSE:LEN) presently operates in 26 states and 75 markets nationwide and has diversified its portfolio beyond home construction by investing in luxury developments, multifamily and single-family rental properties, mortgage lending through Lennar Mortgage, and property technology via LenX.
Over the decades since 1972, Lennar Corporation (NYSE:LEN) has grown through multiple strategic acquisitions, including US Home in 2000 wherein it doubled in size, WCI Communities in 2017, and a prominent merger with CalAtlantic Homes in 2018, which made it the largest homebuilder in the U.S. for a brief period. The company has built over one million homes since its inception and continues to be a dominant force in the housing market, leveraging innovation and large-scale operations to maintain its industry leadership.
On February 7, 2025, Lennar Corporation (NYSE:LEN) completed the planned taxable spin-off of Millrose Properties, Inc. It subsequently distributed roughly 80% of Millrose’s shares to its shareholders. This strategic move is planned to allow both companies to operate with greater flexibility and is expected to create long-term value for investors while positioning Lennar and Millrose for continued success in their respective markets.
For the quarter ended November 2024, Lennar Corporation (NYSE:LEN) posted revenues of $9.95 billion which is 9.31% down from the revenues of $10.97 billion in the same quarter of the previous year. The revenue fell 1.66% short of the consensus estimate of $10.11 billion for the quarter. The company reported quarterly earnings of $4.06 per share in Q4, $0.76 less than the EPS for the quarter a year ago. On January 14, 2025, the company published its earnings call transcript wherein it announced that its Board of Directors had declared a quarterly cash dividend of $0.50 per share for both Class A and Class B common stock payable on February 12, 2025, to holders of record at the close of business on January 29, 2025.
Greenhaven Associates held roughly 9.16 million shares of Lennar Corporation (NYSE:LEN) as of Q4 2024, which represents 18.48% of its portfolio. The company continues to demonstrate resilience and strategic growth, as evidenced by its successful spin-off of Millrose Properties, which is expected to enhance long-term value for investors. Despite a slight decline in revenue and earnings, the company maintains strong financial health, supported by consistent dividend payments and a commitment to shareholder returns, positioning it for sustained success in the homebuilding industry.
1. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders as of Q3: 64
Greenhaven Associates’ Equity Stake: $1.26 Billion
General Motors Company (NYSE:GM) is the largest holding in Ed Wachenheim’s stock portfolio, operating as an automotive manufacturing company. Greenhaven Associates held over 23.72 million shares of the company as of Q4 2024 which constitutes 18.69% of the portfolio.
A leader in the automobile industry for over a century, General Motors Company (NYSE:GM) manufactures vehicles under world-famous brands such as Chevrolet, Buick, GMC, and Cadillac, along with Wuling and Baojun in China. The company operates through multiple joint ventures worldwide, including partnerships in China, India, Egypt, and South Africa. GM also owns OnStar, which provides in-vehicle communication and security services, and GM Financial, its auto financing subsidiary that operates in North America, Latin America, and China. General Motors Company (NYSE:GM) revenue streams primarily include vehicle sales, financing services through GM Financial, and its subscription-based offering known as OnStar, making it a diversified leader in the global automotive industry.
General Motors Company (NYSE:GM)’s revenue of $47.70 billion for the quarter ended December 2024 indicated solid business growth, especially as it demonstrates an increase of 11% year-over-year. The earnings per share (EPS) for Q3 2024 were $1.92, which exceeded analyst estimates of $1.84 by $0.08.
The company faced a challenging fourth quarter, largely due to significant losses from its Chinese joint ventures, resulting in a $5 billion restructuring charge and asset write-downs. Increased competition from domestic automakers like BYD, coupled with Chinese government subsidies supporting local manufacturers, has made the market more difficult for foreign brands.
Despite these setbacks, CEO Mary Barra emphasized the company’s progress in expanding its electric vehicle market share and restructuring efforts to improve its Chinese operations. Additionally, General Motors Company (NYSE:GM) announced plans to refocus its autonomous driving business, shutting down its costly robotaxi program to achieve $1 billion in annual savings. However, uncertainty surrounding U.S. trade, tax, and environmental policies has added further challenges, requiring proactive engagement with policymakers. While the company is committed to long-term growth, these financial letdowns have had a significant impact on its recent performance.
Hotchkis & Wiley Large Cap Value Fund stated the following regarding General Motors Company (NYSE:GM) in its Q3 2024 investor letter:
“General Motors Company (NYSE:GM) is one of the world’s largest manufacturers of passenger vehicles. GM reported a strong Q2; however, management provided a cautious outlook for the second half of 2024. Comments from GM mirrored those of other OEMs and auto suppliers, leading investors to believe the automotive cycle has peaked. We believe this is an overreaction, and we continue to view GM as an attractive investment. We like GM for many reasons. First, we believe GM has leading market positions in its main business segments. Second, the valuation is extremely attractive. Finally, it is a strong free cash flow generator, and the management team is committed to repurchasing their undervalued shares.”
Overall General Motors Company (NYSE:GM) ranks first on our list of Greenhaven Associates’ top 10 stocks to invest in. While we acknowledge the potential for GM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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