We recently published an article titled Greenhaven Associates: Top 10 Stocks to Invest in. In this article, we are going to take a look at where PulteGroup, Inc. (NYSE:PHM) stands against the other stocks.

Edgar “Ed” Wachenheim III is the founder, CEO, and chairman of Greenhaven Associates, a hedge fund management company that manages over $7 billion in investments. He serves as the vice chairman of the board of Central National-Gottesman, the chairman of WNET's board, a trustee at the Museum of Modern Art, and a life trustee who previously chaired both the executive and investment committees of the New York Public Library. Additionally, he is a trustee emeritus and former vice chair at Skidmore College, as well as a trustee emeritus and past board president of Rye Country Day School. A notable figure in the investment community, Ed’s most recent, prominent achievement is the publishing of his book “Common Stocks and Common Sense” in 2016.

Wachenheim’s book, published by Wiley in April 2016, details his investment strategies and provides insight into his career as a successful value investor. In “Common Stocks and Common Sense”, he explains his approach to investing in undervalued companies that face a low probability of permanent loss, with a goal of achieving an annual return between 15% and 20%. He typically holds stocks for multiple years until they appreciate as expected and makes very few changes to his holdings in the shorter term. Even when his investment thesis proves incorrect, Wachenheim argues that his investments still tend to generate positive returns, given that the stock market has historically returned an average of 9% to 10% annually. His strong emphasis on downside risk and capital preservation is a hallmark of his investment philosophy. He also contributed a chapter to the 2017 book “Harriman's New Book of Investing Rules”, and a second edition of his own book was released in 2022.

Greenhaven Associates was founded in 1987 as a branch of Central National-Gottesman, one of the largest global marketers and distributors of paper, packaging, wood, and metals. Wachenheim invests with a long-term time horizon of three to four years, disregarding short-term performance, analyst predictions, and hedge fund sentiment. This disciplined approach seems to work in Greenhaven Associates’ favor, as the hedge fund has achieved an impressive average annual return of approximately 19% between 1988 and 2017.

Beyond his career in finance, Wachenheim has been deeply involved in philanthropy and nonprofit leadership. He served on the Skidmore College board from 1993 to 2001, where three of his children studied, and later became vice chair and chair of the investment committee until 2003. He has also been a long-time supporter of Williams College, his own alma mater, where a new science center is named after him. Additionally, he is a life trustee of the New York Public Library, where the Trustees Room has been named in his honor. Wachenheim chaired the board of WNET, the PBS affiliate, from 2017 to 2022, having joined the board a year earlier.

His extensive philanthropic work includes serving on the boards of UJA-Federation of New York, the New York Foundation (1990–1999), and the Arthur Ross Foundation. He and his wife oversee the Sue & Edgar Wachenheim Foundation, a charitable organization with reported assets of $438 million in 2022. The foundation has directed significant contributions to cultural and educational institutions, including Williams College, Skidmore College, the Museum of Modern Art, WNET, and the New York Public Library.

According to its 13F filing for Q4 2024, Greenhaven Associates held stocks worth a total value of over $6.7 billion with stakes in 22 companies. Notably, the hedge fund’s recent portfolio modification has revealed that over 65% of its hedge fund is invested in just four stocks.

Our Methodology

The stocks discussed below were picked from Greenhaven Associates’ 13F filings for the fourth quarter of 2024. They have been compiled in the ascending order of Greenhaven Associates’ stake in them as of December 31, 2024. To provide readers with a more holistic analysis of each stock, we have included the hedge fund sentiment regarding each company using data from over 900 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds show interest in? The reason is simple: our research has shown that we can outperform the market by imitating the latest top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Construction workers laying bricks during the residential development of multiple lots.

PulteGroup, Inc. (NYSE:PHM)

Number of Hedge Fund Holders as of Q3: 33

Greenhaven Associates’ Equity Stake: $608.12 Million 

PulteGroup, Inc. (NYSE:PHM), founded in 1956 by William J. Pulte in Michigan, is one of the largest homebuilders in the United States. The company started out in 1950 when an 18-year-old William J. Pulte began building and selling houses, and eventually went public in 1972. It expanded through major acquisitions, including DiVosta in 1998, Del E. Webb Construction Company in 2001, and the homebuilding operations of American West Homes in 2019. In 2014, PulteGroup relocated its headquarters to Atlanta, Georgia, and as of 2023, it ranks as the third-largest home construction company in the country, having built nearly 750,000 homes as of Q4 2025.

PulteGroup, Inc. (NYSE:PHM) operates in 40 major cities across the United States and serves a diverse range of homebuyers through its well-established brands, including Pulte, Centex, Del Webb, DiVosta, American West, and John Wieland Homes and Neighborhoods. Under the leadership of CEO Ryan Marshall since 2016, the company continues to expand its market presence and maintain its strong reputation in the residential construction industry.

PulteGroup, Inc. (NYSE:PHM) has established itself as a leading homebuilder by prioritizing efficiency, strategic planning, and high-quality home designs. Under the leadership of CEO Ryan Marshall, the company underwent a transformation after the 2008 financial crisis as it shifted its focus from volume to maximizing return on invested capital. In recent years, the company has consistently increased earnings and maintained strong financial performance: its stock price has surged from $20 per share to $130 since Marshall took over as CEO in 2016, reflecting the company’s disciplined approach to capital allocation and operational excellence.

In an interview in November 2024, Marshall stated that the U.S. housing market remains significantly undersupplied, contributing to rising home prices and an increasing median age for first-time buyers. Regardless, PulteGroup, Inc. (NYSE:PHM) has successfully expanded through both acquisitions and organic growth. Its commitment to innovation, financial discipline, and delivering high-value homes positions the company as a top performer in the industry, making it a strong investment choice.

PulteGroup, Inc. (NYSE:PHM) has proven its strength as a top-performing stock with impressive financial results in Q4 2024. The company reported $4.92 billion in revenue, reflecting a strong 14.63% year-over-year growth and exceeding consensus estimates by nearly 6%. Additionally, its EPS of $3.50 outperformed expectations by $0.23, showcasing its ability to deliver consistent profitability. With strong financial momentum and a solid market position, PulteGroup remains a great stock for investors seeking stability and growth in the homebuilding sector. Greenhaven Associates owns over 5.58 million shares of the company as of Q4 2024 which constitutes 8.99% of the hedge fund’s holding.

Overall PHM ranks 5th on our list of Greenhaven Associates’ top stock picks. While we acknowledge the potential for PHM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PHM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

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