PenderFund Capital Management recently released its May 2020 Investor Letter, a copy of which you can download here. Pender is a growing, independent, value-based mutual fund company with the goal of creating value by generating superior risk-adjusted returns. You should check out PenderFund Capital Management’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.
In the said letter, PenderFund Capital Management highlighted a few stocks and Colliers International Group Inc. (NASDAQ:CIGI) is one of them. Colliers International Group is a real estate company. Year-to-date, Colliers International Group Inc. (NASDAQ:CIGI) stock lost 22.6% and on June 18th it had a closing price of $59.90. Here is what PenderFund Capital Management said:
“The second addition to the portfolio was Colliers Group which is a commercial real estate brokerage. Most of their exposure is to office and industrial buildings, with smaller exposure to retail space. Ten years ago, they were primarily a transactional based company (sales and leases) but now around 50% of their revenue is from recurring sources such as property management and advisory services. Looking back at the previous downturn in 2009, it took the company a year and a half to recover to previous peak EBITDA levels.
The sentiment towards commercial real estate turned extremely negative with the exodus to remote working, resulting in a lot of uncertainties in the outlook. As a broker, Colliers does not own the real estate but instead helps to facilitate transactions and manage the assets. The weak sentiment allowed us to buy what we view as a high-quality company at depressed valuations. Over the past five years they have grown EBITDA by 20% per year through organic growth and diversifying away from transactional based revenue streams.”
In Q4 2019, the number of bullish hedge fund positions on Colliers International Group Inc. (NASDAQ:CIGI) stock increased by about 18% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with CIGI’s upside potential. Our calculations showed that Colliers International Group Inc. (NASDAQ:CIGI) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
Video: Top 5 Stocks Among Hedge Funds
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out stocks recommended/scorned by legendary Bill Miller. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. You can subscribe to our free enewsletter below to receive our stories in your inbox:
Disclosure: None. This article is originally published at Insider Monkey.
