Argosy Investors: “FirstService (FSV) is a Company We Really Like Long-Term”

Argosy Investors, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be seen here. The fund’s 2021 performance was 24.3% in select accounts. The S&P 500 by comparison returned 28.7%. Argosy Investors ended the year with 33% of its portfolio in cash and equivalents and dipped as low as 15% at the end of the 2nd quarter last year. Otherwise, cash hovered between 25-35% of the total account value for the fund. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Argosy Investors, in its Q4 2021 investor letter, mentioned FirstService Corporation (NASDAQ: FSV) and discussed its stance on the firm. Founded in 1989, FirstService Corporation is a Toronto, Canada-based residential property managers company with a $6.0 billion market capitalization, and is currently spearheaded by its CEO, D. Scott Patterson. FSV delivered a -31.07% return since the beginning of the year, while its 12-month returns are down by -10.25%. The stock closed at $135.42 per share on March 08, 2022.

Here is what Argosy Investors has to say about FirstService Corporation in its Q4 2021 investor letter:

“FirstService (FSV) is a company we really like long-term that we felt had exceeded any reasonable valuation metric in the short-term. We trimmed the size of the position by 1/3 late in the year, and FSV stock has declined nearly 15% since then. As you can see in the chart below, FSV’s valuation increased significantly following the government’s interventions to save the American economy.

While FSV has become increasingly viewed by investors as a high-quality business run by high-quality people, I believed that it made sense to take some of our investment off the table. Given the somewhat dramatic decline in FSV’s multiple since our sale, there may be an opportunity in the future to purchase this security in accounts that did not previously own it, and add to others that still do.”

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Our calculations show that FirstService Corporation (NASDAQ: FSV) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. FSV was in 16 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 14 funds in the previous quarter. FirstService Corporation (NASDAQ: FSV) delivered a -30.85% return in the past 3 months.

In August 2021, we also shared another hedge fund’s views on FSV in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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