White Brook Capital Partners, an investment management firm, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Fund’s NAV increased by 6.50%, YTD, net of all realized and accrued fees vs the S&P 400 MidCap Index up 13.55%. The firm believes that small and midcap stocks present a compelling opportunity. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
White Brook Capital Partners highlighted stocks like Builders FirstSource, Inc. (NYSE:BLDR) in the third quarter 2024 investor letter. Based in Irving, Texas, Builders FirstSource, Inc. (NYSE:BLDR) is a building material, manufactured components, and construction services provider. The one-month return of Builders FirstSource, Inc. (NYSE:BLDR) was -5.71%, and its shares gained 67.31% of their value over the last 52 weeks. On October 23, 2024, Builders FirstSource, Inc. (NYSE:BLDR) stock closed at $179.22 per share with a market capitalization of $20.871 billion.
White Brook Capital Partners stated the following regarding Builders FirstSource, Inc. (NYSE:BLDR) in its Q3 2024 investor letter:
“Builders FirstSource, Inc. (NYSE:BLDR), which we wrote about as a year to date laggard last quarter, recovered significantly during the third quarter as achievable mortgage rates moderated. The White Brook Insights piece published on housing the week of July 1st, is a good overview of the industry thesis on Builders First Source. US single family housing permits have begun to increase again and the devastation caused by this year’s hurricane season is a clear boon for Builders First Source and other home building supply companies who will support rebuilding activity in the short term. Over the medium term lower mortgage rates and a recent shallow trend higher in single family home building permits will support the companies. I believe the stock will perform well from here over the relatively short term, but also over the next 3 years as a now more well publicized housing supply deficit requires more new homes to be built and it appears both presidential candidates support some kind of aid to accelerate that activity.”
A crane lifting a truss during the construction of a new building.
Builders FirstSource, Inc. (NYSE:BLDR) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held Builders FirstSource, Inc. (NYSE:BLDR) at the end of the second quarter which was 72 in the previous quarter. In the second quarter, Builders FirstSource, Inc. (NYSE:BLDR) reported net sales of $4.5 billion, fell 1.6% year-over-year. While we acknowledge the potential of Builders FirstSource, Inc. (NYSE:BLDR) 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 another article, we discussed Builders FirstSource, Inc. (NYSE:BLDR) and shared the list of most profitable industrial stocks to invest in. In addition, please check out our hedge fund investor letters Q3 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.