Here’s Why Redfin Corporation (RDFN) Declined in Q4

Investment management company Saga Partners recently released its second half 2022 investor letter. A copy of the same can be downloaded here. In the second half of 2022, the fund declined 40.0% net of fees compared to a 7.6% (including dividends) increase for the S&P 500 Index. The annualized return of the fund since inception is -9.3% net of fees compared to the S&P 500’s 11.4%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Saga Partners highlighted stocks like Redfin Corporation (NASDAQ:RDFN) in its Q4 2022 investor letter. Headquartered in Seattle, Washington, Redfin Corporation (NASDAQ:RDFN) is a real estate brokerage company. On February 17, 2023, Redfin Corporation (NASDAQ:RDFN) stock closed at $8.42 per share. One-month return of Redfin Corporation (NASDAQ:RDFN) was 33.86%, and its shares lost 63.17% of their value over the last 52 weeks. Redfin Corporation (NASDAQ:RDFN) has a market capitalization of $923.969 million.

Saga Partners made the following comment about Redfin Corporation (NASDAQ:RDFN) in its Q4 2022 investor letter:

“Redfin Corporation (NASDAQ:RDFN)’s results have been disappointing in 2022. Aside from the COVID lockdown quarter of Q2’20, Redfin never experienced a year-over-year decline in transaction volume. In fact, the company has never grown transaction volume less than double digits.

The housing market has been difficult to navigate since COVID. Recent volatility in existing home sales is not what one would expect from normal cyclicality but has been due to the imbalances in supply/demand since COVID, combined with higher interest rates. Housing is unique in that most home buyers are also home sellers. Since rates moved up significantly in 2022, homeowners that refinanced at lower rates are less willing to buy a new home, at least at current prices, which has led to standstill in existing home transactions…” (Click here to read the full text)

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Redfin Corporation (NASDAQ:RDFN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Redfin Corporation (NASDAQ:RDFN) at the end of the third quarter, which was 19 in the previous quarter.

We discussed Redfin Corporation (NASDAQ:RDFN) in another article and shared the list of best seasonal stocks to buy. In addition, please check out our hedge fund investor letters Q4 2022 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.