LRT Capital Management, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. A return of -7.37% was recorded by the LRT Economic Moat strategy for the first quarter of 2022, resulting in a 12-month return of +16.72%. In the LRT Economic Moat strategy, as of April 1st, 2022, the fund’s net exposure was approximately 99% and its estimated net beta-adjusted exposure was 62.2%. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, LRT Capital Management mentioned Colliers International Group Inc. (NASDAQ:CIGI) and explained its insights for the company. Founded in 1972, Colliers International Group Inc. (NASDAQ:CIGI) is a Toronto, Canada-based real estate company with a $4.7 billion market capitalization. Colliers International Group Inc. (NASDAQ:CIGI) delivered a -28.66% return since the beginning of the year, while its 12-month returns are down by -3.21%. The stock closed at $106.04 per share on May 02, 2022.
Here is what LRT Capital Management has to say about Colliers International Group Inc. (NASDAQ:CIGI) in its Q1 2022 investor letter:
“Colliers International Group is a commercial real estate brokerage and investment management company founded by Jay S. Hennick in 1976 in Toronto, Canada. From humble beginnings the company has grown, primarily through acquisitions, to become one of the five largest commercial real estate brokerages in the world (the others being CBRE, Jones Lang LaSalle, Cushman & Wakefield, and Savills). The company today offers a full range of services and reports in the following segments: Outsourcing & Advisory (45% of revenue; this includes Engineering & Design services, Valuation services and Property Management), Capital Markets (25% of revenue), Commercial Real Estate Leasing (24% of revenue), and Investment Management (6% of revenue). The company believes that about half of its revenue is recurring in nature. The Investment Management segment deserves special attention, as it is the result of an acquisition of the real estate investment management company Harrison Street in 2018. While the segment contributes the smallest part of revenues, it has a very high margin, contributing over 17% of the company’s EBITDA.
Colliers has historically grown by acquisition, and we expect it to continue to do so. The real estate services market is highly fragmented outside of North America presenting ample opportunities for Colliers to continue its growth strategy. The company has been a good steward of shareholder capital and spun out FirstService Residential (FSV) in 2014 to maximize the value of that business. This spinout accounts for the drop in revenue in 2014 seen in the chart below.”
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Our calculations show that Colliers International Group Inc. (NASDAQ:CIGI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Colliers International Group Inc. (NASDAQ:CIGI) was in 19 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 16 funds in the previous quarter. Colliers International Group Inc. (NASDAQ:CIGI) delivered a -27.45% return in the past 3 months.
In March 2022, we also shared another hedge fund’s views on Colliers International Group Inc. (NASDAQ:CIGI) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
