Should You Still Consider Investing in Green Brick Partners (GRBK)?

Black Bear Value Partners, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly portfolio return of -2.4 was recorded by the fund for the third quarter of 2022 resulting in a year-to-date return of +0.7%. Meanwhile, its benchmarks, the  S&P 500 and HFRI Index delivered -8.0% and -5.7% returns respectively for the same period. Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, Black Bear Value 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 $ 963.1 million market capitalization. Green Brick Partners, Inc. (NASDAQ:GRBK) delivered a -31.03% return since the beginning of the year, while its 12-month returns are down by -3.99%. The stock closed at $20.92 per share on October 14, 2022.

Here is what Black Bear Value Fund has to say about Green Brick Partners, Inc. (NASDAQ:GRBK) in its Q3 2022 investor letter:

“Housing: Green Brick Partners (NASDAQ:GRBK)

I would refer you to our Q2 letter as we discuss these names in detail and our feelings have not changed. While mortgage rates are higher, they are not unusual versus history. The low rates of the last 5-10 years are the outlier. We have a structural shortage of housing in the USA. With existing homeowners locked into low-rate mortgages, the aspiring homeowner may increasingly need to find a home from a homebuilder. The next 6-12 months could be rocky as people adjust to the increase in pricing and rates. Eventually the housing market should adjust to the new normal (or rates could go down). We do have a large credit short which benefits if rates continue to go up.”

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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 15 hedge fund portfolios at the end of the second quarter of 2022, compared to 13 funds in the previous quarter. Green Brick Partners, Inc. (NASDAQ:GRBK) delivered a -10.25% return in the past 3 months.

In August 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 Q3 page.

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