Longleaf Partners, managed by Southeastern Asset Management, released its “Small-Cap Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 8.92% in the third quarter, outperforming the Russell 3000’s 6.23% return, but slightly trailing the more relevant Russell 2000’s 9.27% return. The portfolio achieved strong absolute returns in a volatile small-cap environment. For more information on the fund’s best picks in 2024, please check its top five holdings.
Longleaf Partners Small-Cap Fund highlighted stocks like Anywhere Real Estate Inc. (NYSE:HOUS) in the third quarter 2024 investor letter. Headquartered in Madison, New Jersey, Anywhere Real Estate Inc. (NYSE:HOUS) is a residential real estate services provider. The one-month return of Anywhere Real Estate Inc. (NYSE:HOUS) was -22.90%, and its shares lost 17.92% of their value over the last 52 weeks. On October 24, 2024, Anywhere Real Estate Inc. (NYSE:HOUS) stock closed at $3.94 per share with a market capitalization of $443.979 million.
Longleaf Partners Small-Cap Fund stated the following regarding Anywhere Real Estate Inc. (NYSE:HOUS) in its Q3 2024 investor letter:
“Anywhere Real Estate Inc. (NYSE:HOUS) – Real estate brokerage franchisor Anywhere was another top contributor for the quarter. In the short term, this company’s stock price is impacted most by interest rates. As the Federal Reserve started easing rates in the quarter, optimism around mortgage rates improved which was a positive for Anywhere. While the housing market remains volatile, even at these low levels Anywhere continues to be FCF positive. The company will generate substantial FCF in a more normalized environment. We trimmed our position after recent strong performance but continue to have confidence in CEO Ryan Schneider as he works on what is within the company’s control to grow value per share.”
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Anywhere Real Estate Inc. (NYSE:HOUS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Anywhere Real Estate Inc. (NYSE:HOUS) at the end of the second quarter which was 26 in the previous quarter. Anywhere Real Estate Inc. (NYSE:HOUS) delivered $1.7 billion of revenue and $139 million of operating EBITDA during the second quarter of 2024. While we acknowledge the potential of Anywhere Real Estate Inc. (NYSE:HOUS) 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 Anywhere Real Estate Inc. (NYSE:HOUS) and shared Longleaf Partners Small-Cap Fund views on the company in the previous quarter. 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.