Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 3.88% gross of fees (3.82% net of fees), outperforming the Russell 1000 Value Index’s 1.01% and underperforming the S&P 500 Index’s 7.5% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Aristotle Capital Value Equity Strategy highlighted stocks like Lennar Corporation (NYSE:LEN) in the first quarter 2023 investor letter. Based in Miami, Florida, Lennar Corporation (NYSE:LEN) is a home builder. On June 20, 2023, Lennar Corporation (NYSE:LEN) stock closed at $121.58 per share. One-month return of Lennar Corporation (NYSE:LEN) was 12.68%, and its shares gained 79.69% of their value over the last 52 weeks. Lennar Corporation (NYSE:LEN) has a market capitalization of $34.669 billion.
Aristotle Capital Value Equity Strategy made the following comment about Lennar Corporation (NYSE:LEN) in its first quarter 2023 investor letter:
“Lennar Corporation (NYSE:LEN), one of the nation’s largest homebuilders, was a primary contributor for the quarter. Following a housing surge supported by low mortgage rates and government stimulus, U.S. home sales activity began to decline in 2022 as rapidly rising mortgage rates reduced affordability. Over our decade‐plus investment in Lennar, we have admired the management team’s ability to quickly respond to changing housing dynamics. Recent times were no exception, as Lennar adopted a dynamic pricing model that, in combination with its digital‐marketing platform, helped to protect its backlog and prevent cancellations. As a result, fiscal first‐quarter orders declined 10% year‐over‐year compared to a 38% decline for the homebuilder industry. The company has also made progress on its transition to a lighter asset strategy, a catalyst we previously identified, now controlling 68% of itsland through options(up from 39% in 2020). Less capital tied up in land and the ability to acquire parcels on a just‐in‐time basis, in our opinion, should support enhanced FREE cash flow generation. As such, we believe Lennar’s strong balance sheet, prudent inventory management and further ability to implement cost and production efficiencies position it well to both overcome near‐term housing market softness and benefit from the decade‐long undersupply of homes in the U.S.”
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Lennar Corporation (NYSE:LEN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held Lennar Corporation (NYSE:LEN) at the end of first quarter 2023 which was 54 in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2023 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.
