Is it Still Safe to Invest in Colliers International Group (CIGI)?

Argosy Investors, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here. The fund’s 2022 first-quarter performance was -15.1% in select accounts. The S&P 500 by comparison returned -4.4%. Argosy ended the quarter with 43% of the portfolio in cash and equivalents, which means that these results would have been worse without the allocation to cash. 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, Argosy Investors 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 $4.4 billion market capitalization. Colliers International Group Inc. (NASDAQ:CIGI) delivered a -31.50% return since the beginning of the year, while its 12-month returns are down by -10.72%. The stock closed at $101.82 per share on June 20, 2022.

Here is what Argosy Investors has to say about Colliers International Group Inc. (NASDAQ:CIGI) in its Q1 2022 investor letter:

“CIGI is a commercial real estate broker, and CRE brokers have typically seen commissions evaporate during economic downturns, as sales plummet. With rising interest rates, we expect owners of assets will be less likely to unload their holdings, while there could be some pressure on real estate valuations over time if interest rates remain higher than the historic lows they reached during the recession. All of this may pressure transaction volumes in the short-term and transaction values (and thus commissions) in the next few years. CIGI is transitioning away from the commission-driven CRE model towards a higher recurring revenue focus, but they are still not yet far enough beyond that foundation to avoid a significant hit to their earnings.”

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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 20 hedge fund portfolios at the end of the first quarter of 2022, compared to 19 funds in the previous quarter. Colliers International Group Inc. (NASDAQ:CIGI) delivered a -21.79% return in the past 3 months.

In May 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.