Is it Worthy to Invest in Green Brick Partners (GRBK)?

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline, and client alignment. Amid a rocky market environment, the portfolio’s negative returns still outpaced the Russell 2000 Index by a healthy margin in Q1.  Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Diamond Hill Small Cap Fund mentioned Green Brick Partners, Inc. (NASDAQ:GRBK) and explained its insights for the company. Founded in 2006, Green Brick Partners, Inc. (NASDAQ:GRBK) is a Plano, Texas-based operative builders company with a $1.0 billion market capitalization. Green Brick Partners, Inc. (NASDAQ:GRBK) delivered a -29.01% return since the beginning of the year, while its 12-month returns are down by 2.67%. The stock closed at $21.53 per share on July 12, 2022. 

Here is what Diamond Hill Small Cap Fund has to say about Green Brick Partners, Inc. (NASDAQ:GRBK) in its Q1 2022 investor letter:

“Homebuilder Green Brick, along with other housing companies, was pressured in Q1 primarily on concerns that rising mortgage rates will dampen new home demand. We recognize the challenges presented by a rising interest rate environment in the near term. Longer term, the secular outlook on housing construction is positive, as there remains a material shortage of housing stock in the US. We believe Green Brick remains one of the best positioned small-cap housing companies, with attractive real estate, a strong balance sheet, and a solid, shareholder-aligned management team that has been a wise allocator of capital.”

Our calculations show that Green Brick Partners, Inc. (NASDAQ:GRBK) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Green Brick Partners, Inc. (NASDAQ:GRBK) was in 13 hedge fund portfolios at the end of the first quarter of 2022, compared to 12 funds in the previous quarter. Green Brick Partners, Inc. (NASDAQ:GRBK) delivered a 12.19% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on Green Brick Partners, Inc. (NASDAQ:GRBK) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.