D.R. Horton (DHI) Surged in Q3 Following Earnings That Surpassed Expectations

Core Insights - Heartland Mid Cap Value Fund's portfolio increased by 1.63% in Q3 2025, underperforming the Russell Midcap® Value Index which gained 6.18% [1] - Stock selection was identified as the main reason for the underperformance, with a market environment favoring large- and mid-cap growth stocks driven by optimism around AI and rising electricity demand [1] - The focus on valuations during this period was noted as potentially detrimental to performance [1] Company Highlights - D.R. Horton, Inc. (NYSE:DHI) was highlighted as a significant holding, experiencing a one-month return of -11.92% and a 52-week loss of 18.99% [2] - As of October 10, 2025, D.R. Horton, Inc. had a market capitalization of $45.19 billion, with shares closing at $151.58 [2] - D.R. Horton, Inc. was noted as the best-performing holding in the quarter, benefiting from its position as the largest homebuilder in the U.S. with approximately 10% market share [3] Hedge Fund Interest - D.R. Horton, Inc. was held by 64 hedge fund portfolios at the end of Q2 2025, a decrease from 67 in the previous quarter [4] - While D.R. Horton, Inc. is recognized for its investment potential, the company is not among the 30 most popular stocks among hedge funds, with a suggestion that certain AI stocks may offer better upside potential [4]