Third Avenue Management, an investment management company based in New York City, released its “Real Estate Value Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the quarter the fund returned +1.99% (net fees) compared to +1.04% (before fees) for the Fund’s most relevant benchmark, the FTSE EPRA NAREIT Developed Index. Holdings in US-based homebuilders, UK-centric real estate, and Industrial and Logistics REITs were the leading contributors of the fund in the quarter while, investments in certain Real Estate Operating Companies and the Preferred Equity of Fannie Mae and Freddie Mac were detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Third Avenue Real Estate Value Fund 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 9, 2023, Lennar Corporation (NYSE:LEN) stock closed at $114.20 per share. One-month return of Lennar Corporation (NYSE:LEN) was 0.86%, and its shares gained 53.39% of their value over the last 52 weeks. Lennar Corporation (NYSE:LEN) has a market capitalization of $32.556 billion.
Third Avenue Real Estate Value Fund made the following comment about Lennar Corporation (NYSE:LEN) in its first quarter 2023 investor letter:
“The primary contributors to performance during the quarter included the Fund’s investments in leading US-based homebuilders (Lennar Corporation (NYSE:LEN) and D.R. Horton), UK-centric real estate holdings (Berkeley Group and Savills plc), and Industrial and Logistics REITs (Prologis, First Industrial and Segro plc).
The Fund’s other activity during the period was modest in nature and included slight reductions to certain holdings for portfolio management purposes (Lennar Corp., D.R. Horton, FNF Group, Wharf Holdings, and AMH).
After factoring in this activity, the Fund had 41% of its capital invested in Residential Real Estate companies with strong ties to the U.S. and U.K. residential markets—where there remain supply deficits after years of under-building. In conjunction with near record-low inventory levels, there also remains significant demand for new products at affordable price points (both for-sale and for-rent). Therefore, these Fund holdings seem positioned to benefit from a multi-year recovery in residential construction and ancillary activities, particularly as mortgage rates stabilize for conforming loans. At the end of the quarter, these holdings included a diversified set of businesses including homebuilding (Lennar Group and DR Horton).”
Photo by Jens Behrmann on Unsplash
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.
