Silver Beech Capital, a value-oriented investment management firm, released its inaugural first quarter 2023 investor letter. A copy of the same can be downloaded here. The recent banking sector decline had an impact on the fund’s first-quarter performance. However, the fund still returned 2.8% in the first quarter compared to a 5.3% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Silver Beech Capital highlighted stocks like Green Brick Partners, Inc. (NYSE:GRBK) in the first quarter 2023 investor letter. Headquartered in Plano, Texas, Green Brick Partners, Inc. (NYSE:GRBK) is a homebuilding and land development company. On April 27, 2023, Green Brick Partners, Inc. (NYSE:GRBK) stock closed at $36.84 per share. One-month return of Green Brick Partners, Inc. (NYSE:GRBK) was 5.08%, and its shares gained 87.01% of their value over the last 52 weeks. Green Brick Partners, Inc. (NYSE:GRBK) has a market capitalization of $1.696 billion.
Silver Beech Capital made the following comment about Green Brick Partners, Inc. (NYSE:GRBK) in its Q1 2023 investor letter:
“Green Brick Partners, Inc. (NYSE:GRBK is a small-capitalization homebuilder with a leading market position in Dallas Fort Worth, TX and Atlanta, GA. We like Green Brick for its conservative land underwriting strategy and focus on high growth markets, pristine balance sheet, attention to capital allocation, and management’s shareholder alignment. These are rare features in the boom-bust world of homebuilding. Indeed, despite its smaller size and low debt level, Green Brick earned among the highest gross margins and returns on equity among homebuilders in 2021 and 2022.
We are long-term investors and expect that orientation to be reflected in our investment holding period. The first quarter offered a rare exception to the rule: we fully exited our holding in Green Brick after seeing our investment thesis play out in less than one month. We exited our position as we believe the company’s current valuation offers less margin of safety compared to the Fund’s portfolio and other opportunities. We continue to monitor Green Brick on our watchlist. We think the company is well run and will benefit from the structural underbuilding of for-sale residential homes that has occurred since the GFC.”
Green Brick Partners, Inc. (NYSE:GRBK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Green Brick Partners, Inc. (NYSE:GRBK) at the end of the fourth quarter which was 18 in the previous quarter.
We discussed Green Brick Partners, Inc. (NYSE:GRBK) in another article and shared Greenlight Capital’s views on the company 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.
