LRT Capital Management is Hopeful about Colliers International Group (CIGI)’s Growth Strategy

LRT Capital Management, an investment management firm, released its July month 2022 investor letter. A copy of the same can be downloaded here. As of August 1, 2022, the fund’s net exposure was approximately 67.37% and the beta-adjusted exposure was 45.31%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

LRT Capital Management discussed stocks like Colliers International Group Inc. (NASDAQ:CIGI) in the investor letter. Headquartered in Toronto, Canada, Colliers International Group Inc. (NASDAQ:CIGI) is a real estate and investment management services provider. On September 9, 2022, Colliers International Group Inc. (NASDAQ:CIGI) stock closed at $118.14 per share. One-month return of Colliers International Group Inc. (NASDAQ:CIGI) was -9.30% and its shares lost 11.21% of their value over the last 52 weeks. Colliers International Group Inc. (NASDAQ:CIGI)  has a market capitalization of $5.112 billion.

Here is what LRT Capital Management specifically said about Colliers International Group Inc. (NASDAQ:CIGI):

Colliers International Group Inc. (NASDAQ:CIGI) 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.”

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Colliers International Group Inc. (NASDAQ:CIGI)  is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Colliers International Group Inc. (NASDAQ:CIGI) at the end of the second quarter which was 20 in the previous quarter.

We discussed Colliers International Group Inc. (NASDAQ:CIGI) in another article and shared LRT Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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