Here’s What Hurt Builders FirstSource (BLDR) in Q4

Core Insights - Pelican Bay Capital Management (PBCM) reported a strong performance for its Concentrated Value Strategy, achieving an 8.5% return in Q4 2025, outperforming the Russell 1000 Value Index which returned 3.8% [1] - The full-year return for the Strategy was 20.6%, compared to 15.9% for the Index, driven by AI-related stocks and commodities exposure [1] Company Performance - Builders FirstSource, Inc. (NYSE:BLDR) was highlighted as an underperformer in PBCM's Q4 2025 investor letter, with a one-month return of 0.27% and a 52-week loss of 20.10% [2][3] - As of February 6, 2026, Builders FirstSource, Inc. had a stock price of $124.42 and a market capitalization of $13.758 billion [2] Market Sentiment - Elevated mortgage rates and a slowdown in new home sales negatively impacted investor sentiment towards homebuilding companies, including Builders FirstSource and Toll Brothers, which were among the bottom five detractors for PBCM [3] - Despite current challenges, PBCM remains bullish on the long-term prospects for the homebuilding sector, citing a housing shortage and significant discounts to intrinsic values as positive indicators [3] Hedge Fund Interest - Builders FirstSource, Inc. was held by 72 hedge fund portfolios at the end of Q3 2025, a slight decrease from 74 in the previous quarter, indicating a stable but cautious interest among hedge funds [4] - PBCM suggests that while Builders FirstSource has potential, certain AI stocks may offer greater upside potential with less downside risk [4]