Aristotle Capital Management, LLC, an investment management company, released its “Value Equity Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The U.S. equity market rebounded in 2023 following a turbulent year in 2022, with the S&P 500 Index posting a 26.29% annual return. In the fourth quarter, the fund posted a return of 14.43% gross of fees (14.36% net of fees) compared to a 9.50% return for the Russell 1000 Value Index and an 11.69% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Aristotle Value Equity Strategy featured stocks such as Lennar Corporation (NYSE:LEN) in the fourth quarter 2023 investor letter. Headquartered in Miami, Florida, Lennar Corporation (NYSE:LEN) operates as a homebuilder. On January 11, 2024, Lennar Corporation (NYSE:LEN) stock closed at $155.20 per share. One-month return of Lennar Corporation (NYSE:LEN) was 0.25%, and its shares gained 56.53% of their value over the last 52 weeks. Lennar Corporation (NYSE:LEN) has a market capitalization of $43.659 billion.
Aristotle Value Equity Strategy stated the following regarding Lennar Corporation (NYSE:LEN) in its fourth quarter 2023 investor letter:
“Lennar Corporation (NYSE:LEN), one of the nation’s largest homebuilders, was the primary contributor for the period. Increasing mortgage rates reached a peak during the fourth quarter, but Lennar’s dynamic pricing model, combined with its digital marketing platform and buyer incentives, continued to drive volume and generate cash flow, all while reducing construction cycle times, returning capital to shareholders and further lowering the company’s debt. In 2023, Lennar delivered 73,000 homes (a 10% year-over-year volume increase). The company’s land light strategy also continues to move forward, with 76% of land now controlled through options, as compared to 69% a year ago (and less than 30% in 2015). Over our decade-plus investment in Lennar, we have admired the management team’s ability to respond to changing housing dynamics. We believe Lennar’s current land and pricing strategy should continue to support enhanced FREE cash flow generation. In addition, Lennar’s strong balance sheet, prudent inventory management and further ability to implement cost and production efficiencies position it well to meet demand amid the decade-long undersupply of homes in the U.S.”
Lennar Corporation (NYSE:LEN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held Lennar Corporation (NYSE:LEN) at the end of third quarter which was 66 in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.
