Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -1.58% in the fourth quarter, compared to the Russell 3000’s 2.63% return. For the year, the fund returned 9.69% compared to 23.81% return for the benchmark. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, Longleaf Partners Small-Cap Fund emphasized stocks such as Anywhere Real Estate Inc. (NYSE:HOUS). Headquartered in Madison, New Jersey, Anywhere Real Estate Inc. (NYSE:HOUS) is a residential real estate services provider. The one-month return of Anywhere Real Estate Inc. (NYSE:HOUS) was -1.68%, and its shares lost 38.20% of their value over the last 52 weeks. On March 4, 2025, Anywhere Real Estate Inc. (NYSE:HOUS) stock closed at $3.5100 per share with a market capitalization of $390.53 million.
Longleaf Partners Small-Cap Fund stated the following regarding Anywhere Real Estate Inc. (NYSE:HOUS) in its Q4 2024 investor letter:
“Anywhere Real Estate Inc. (NYSE:HOUS) – Real estate brokerage franchisor Anywhere was a top detractor for the year and a material detractor for the quarter. The company faced the most challenging news flow this year among our holdings. First, the National Association of Realtors (NAR) settlement affecting buy-side commissions hurt market perception of the entire industry again, even if the long-term impact of this news is still debatable. Existing home sales remain well below historical averages, and interest rates have not come down. In the short term, the company’s stock price is impacted most by interest rates. As the Federal Reserve started easing rates this year, optimism around mortgage rates improved, and we trimmed our position in the third quarter after strong performance. With interest rates up since that decision, our remaining position hurt us in the fourth quarter. We continue to have confidence in the management team, led by CEO Ryan Schneider, to work on what is within its control to grow value per share, but we acknowledge that this has been a disappointing investment that had too much leverage for a housing environment like we are currently witnessing.”
An aerial view of a large real estate brokerage office.
Anywhere Real Estate Inc. (NYSE:HOUS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Anywhere Real Estate Inc. (NYSE:HOUS) at the end of the fourth quarter which was 26 in the previous quarter. While we acknowledge the potential of Anywhere Real Estate Inc. (NYSE:HOUS) 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 Anywhere Real Estate Inc. (NYSE:HOUS) and shared the long-term stock picks of billionaire Mason Hawkins. Anywhere Real Estate Inc. (NYSE:HOUS) boosted Longleaf Partners Small-Cap Fund’s performance in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.
