Should You Invest in Lennar Corporation (LEN)?

Hardman Johnston Global Advisors, an investment management company, released its “Hardman Johnston Global Equity” fourth quarter 2024, investor letter. A copy of the letter can be downloaded here. The fourth quarter concluded the portfolio’s successful year in comparison to its benchmark index. The strategy returned -0.17%, net of fees, in the quarter, compared to -0.99% return for the MSCI AC World Net Index. From a sector standpoint, the main drivers of the portfolio’s outperformance during the quarter were Industrials and Materials.  In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Hardman Johnston Global Equity Strategy emphasized stocks such as Lennar Corporation (NYSE:LEN). Lennar Corporation (NYSE:LEN) is a US-based homebuilder operates primarily under the Lennar brand. The one-month return Lennar Corporation (NYSE:LEN) was -0.41%, and its shares lost 24.99% of their value over the last 52 weeks. On March 20, 2025, Lennar Corporation (NYSE:LEN) stock closed at $120.07 per share with a market capitalization of $31.519 billion.

Hardman Johnston Global Equity Strategy stated the following regarding Lennar Corporation (NYSE:LEN) in its Q4 2024 investor letter:

“During the quarter, we initiated three new positions in Lennar Corporation (NYSE:LEN), Bank of America Corp., and Uber Technologies, Inc. Lennar is the second largest homebuilder in the country and is focused on building affordable homes to address the structural shortage of housing. Despite high interest rates, interest in home ownership remains high, and the low unemployment rate has led to resilient pricing. With the Fed likely to cut rates in 2025, reduced mortgage rates could spur demand. The company is also spinning out its capital intensive land business, in order to lower balance sheet risk and improve returns.”

Lennar Corporation (NYSE:LEN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 70 hedge fund portfolios held Lennar Corporation (NYSE:LEN) at the end of the fourth quarter which was 68 in the previous quarter. While we acknowledge the potential of Lennar Corporation (NYSE:LEN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q4 2024 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.