GoodHaven Capital Management, a concentrated portfolio investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 7.93% was recorded by the fund at year end of 2020, below its S&P 500 benchmark that delivered a 17.46% return in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
GoodHaven Capital Management, in their Q4 2020 investor letter, mentioned Lennar Corporation (NYSE: LEN) and emphasized their views on the company. Lennar Corporation is a Miami, Florida-based home construction and real estate company that currently has a $31.3 billion market capitalization. Since the beginning of the year, LEN delivered a 34.70% return, impressively extending its 12-month gains to 155.04%. As of March 25, 2021, the stock closed at $99.14 per share.
Here is what GoodHaven Capital Management has to say about Lennar Corporation in their Q4 2020 investor letter:
“The residential housing market’s recent dramatic strength is now no secret, which has led to strong recent results from our Lennar holdings. Lennar’s well regarded Chairman Stuart Miller sums up the current environment this way “As a macro overview, let me say that the housing market is simply very strong. And demand for homes, new and existing, is greater than the limited supply. It has simply never been this easy to sell as many homes as we would like in every market and every price range across the country. The American dream of homeownership is once again an essential aspiration of the American population and the resolution of the current pandemic will not slow the growing demand. Low mortgage rates and ample deposit money from savings, from vacations not taken, movies not seen, restaurants not visited and, of course, stimulus dollars from the government are driving customers to purchase a home, a larger home, a home with a yard, an office, a nicer kitchen and a place to call their own.
By the way, Lennar’s impressive progress towards a more “capital light” business model has accelerated lately – more on that in the next letter perhaps. ”
Copyright: alotofpeople / 123RF Stock Photo
Our calculations show that Lennar Corporation (NYSE: LEN) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Lennar Corporation was in 52 hedge fund portfolios, compared to 60 funds in the third quarter. LEN delivered a 27.66% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.
