Tri Pointe Homes (TPH) Rose on Unexpected Strong Demand in Homebuilding Industry
Third Avenue Management, an investment management company based in New York City, released its “Small-Cap Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. Unlike the volatile first quarter, there was a methodological increase in returns in the second quarter. The fund returned 2.98% in Q2 compared to a 3.18% return for the Russell 2000 Value Index. For the first half of 2023, the fund returned 7.27% compared to 2.50% for the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Third Avenue Small-Cap Value Fund highlighted stocks like Tri Pointe Homes, Inc. (NYSE:TPH) in the second quarter 2023 investor letter. Based in Incline Village, Nevada, Tri Pointe Homes, Inc. (NYSE:TPH) designs, constructs, and sells single-family homes and condominiums. On July 31, 2023, Tri Pointe Homes, Inc. (NYSE:TPH) stock closed at $31.88 per share. One-month return of Tri Pointe Homes, Inc. (NYSE:TPH) was -2.48%, and its shares gained 81.65% of their value over the last 52 weeks. Tri Pointe Homes, Inc. (NYSE:TPH) has a market capitalization of $3.191 billion.
Third Avenue Small-Cap Value Fund made the following comment about Tri Pointe Homes, Inc. (NYSE:TPH) in its second quarter 2023 investor letter:
"Homebuilder, Tri Pointe Homes, Inc. (NYSE:TPH), rose nearly 30% during the quarter as the homebuilding industry is experiencing unexpected strong demand despite higher interest rates. Nearly two thirds of U.S. home borrowers have mortgages with rates below 4% which has stifled the resale market and provided an opportunity for homebuilders to fill the gap. Homebuilders traditionally provide 10% of home sales, but with homeowners reluctant to sell their homes given below market rate mortgages, new builds now account for roughly one-third of home sales. As a result, Tri-Pointe is delivering more homes at higher than expected prices despite rising interest rates."
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Tri Pointe Homes, Inc. (NYSE:TPH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Tri Pointe Homes, Inc. (NYSE:TPH) at the end of first quarter which was 28 in the previous quarter.
We discussed Tri Pointe Homes, Inc. (NYSE:TPH) in another article and shared the list of best home builder stocks to buy. In addition, please check out our hedge fund investor letters Q2 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.
