Is Realogy (RLGY) a Great Long-Term Investment?

Gator Capital Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. A return of 6.94% was recorded by the fund for the fourth quarter of 2021, compared to its benchmarks, the S&P  500 Total Return Index that delivered an 11.03% return, and the S&P 1500 Financials Index that had a 4.77% gain for the same period.  Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Gator Capital Management, in its Q4 2021 investor letter, mentioned Realogy Holdings Corp. (NYSE: RLGY) and discussed its stance on the firm. Founded in 2006, Realogy Holdings Corp. is a Madison, New Jersey-based real estate and relocation services company with a $1.8 billion market capitalization, and is currently spearheaded by its CEO, Ryan M. Schneider. RLGY delivered a -7.85% return since the beginning of the year, while its 12-month returns are down by -6.69%. The stock closed at $15.49 per share on March 11, 2022.

Here is what Gator Capital Management has to say about Realogy Holdings Corp. in its Q4 2021 investor letter:

“Although higher interest rates will benefit the Fund’s portfolio, we are making sure that the Fund is not simply a bet on higher rates. We have several large holdings with inexpensive valuations and catalysts unrelated to higher interest rates. Realogy (RLGY), the parent company of Coldwell Banker, trades at 4x EBITDA, and announced a share repurchase program equal to 15% of the company’s market capitalization.”

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Our calculations show that Realogy Holdings Corp. (NYSE: RLGY) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. RLGY was in 20 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 20 funds in the previous quarter. Realogy Holdings Corp. (NYSE: RLGY) delivered a -4.97% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on RLGY 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.