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Hedge Funds

2 Picks from Expert Hedge Fund Manager Edgar Wachenheim’s Chest

Today, in our “Expert Spotlight,” we will look at Edgar Wachenheim, the founder, CEO, and Chairman of Greenhaven Associates. Greenhaven is a long-term, long-only value investment management firm with $4.63 billion in assets under management (AUM).

We will look at two of Wachenheim’s top picks for 2022 – global financial services behemoth Goldman Sachs Group (GS) and homebuilder company Lennar Corp. (LEN).

Global markets are witnessing unprecedented events. At such times, it is prudent to follow the views of experts who are in a better position to gauge the markets and the company’s performance. Notably, TipRanks aggregates the recommendations of several top experts, which can be considered while making investment choices to maximize returns.

Our Expert’s Ranking on TipRanks

According to TipRanks’ Star Ranking System, Wachenheim is ranked #10 out of 424 hedge funds tracked.

Remarkably, since June 2013, Greenhaven’s portfolio has gained a whopping 331.03% under Wachenheim’s stewardship, beating the returns generated by both the average hedge fund portfolio and the S&P 500 (SPX) during the same period.

A majority of Greenhaven’s investments are focused on the Consumer Goods sector (41.99%), followed by the Financial sector (31.63%).

On an annualized basis, Wachenheim’s investment choices have generated an impressive 31.89% average return over three years. However, due to the tumultuous market conditions, this return has turned negative lately, with the last 12 months averaging a loss of 10.67%.

Goldman Sachs is No. 1 in Greenhaven’s Portfolio

Goldman Sachs provides investment banking, securities, and investment management services. GS takes the number one spot in Greenhaven’s holdings with 14.21% of the overall portfolio, valued at $658.20 million (2.22 million shares).

Recently, the five-star fund manager increased GS holdings by 5.43%, reflecting approximately 114,110 shares. GS stock has lost 9.4% so far this year. In the past five years, Wachenheim has had a mix of Buy and Sell calls on GS.

As per TipRanks’ Hedge Fund Trading Activity tool, confidence in Goldman Sachs is currently Very Positive, as 37 hedge funds increased their cumulative holdings of GS stock by 474,300 shares in the last quarter.

Lennar Corporation takes the Number 2 Spot

Following up closely is Lennar Corp., which holds the second position (14.13%) in Greenhaven’s portfolio, valued at $657.77 million (9.32 million shares).

Lennar provides real estate-related financial and investment management services. LEN stock has lost 21.8% year-to-date.

Greenhaven recently increased its exposure to LEN stock by a whopping 24.78%, adding approximately 1.85 million shares. Similar to GS, Wachenheim has given a mix of Buy and Sell calls on LEN stock.  

As per TipRanks’ Hedge Fund Trading Activity tool, confidence in Lennar Corp. is currently Very Positive, as 23 hedge funds increased their cumulative holdings of LEN stock by 1.7 million shares in the last quarter.

Ending Thoughts

Interestingly, Wachenheim boasts a Sharpe ratio of 4.47, which is much higher than the average hedge fund manager’s ratio and signifies that our expert’s calls typically generate higher returns compared to the risk involved. With over 34 years of experience in successfully running Greenhaven, Wachenheim’s stock picks can be followed to make informed investment decisions.

Disclosure

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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