Should You Consider Acquiring FirstService (FSV) Shares?

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 FirstService Corporation (NASDAQ:FSV) and explained its insights for the company. Founded in 1989, FirstService Corporation (NASDAQ:FSV) is a Toronto, Canada-based residential property managers company with a $5.1 billion market capitalization. FirstService Corporation (NASDAQ:FSV) delivered a -41.42% return since the beginning of the year, while its 12-month returns are down by -32.59%. The stock closed at $115.10 per share on June 20, 2022.

Here is what Argosy Investors has to say about FirstService Corporation (NASDAQ:FSV) in its Q1 2022 investor letter:

“FirstService (NASDAQ:FSV) is the largest manager of homeowners’ associations in the US and only has 6% share of the market. Currently 30% of homes are members in HOAs, while 50% of newly built homes are being built into HOAs. FSV also owns a group of businesses that provide services to the residential and commercial construction industries. I estimate that they earn a 20% on their net tangible capital and added this company to a handful of accounts that did not previously hold FSV. Given that the valuation has gotten more favorable since our purchase, I would not be surprised if more FSV makes its way into the portfolio at some point.”

Photo by Blake Wheeler on Unsplash

Our calculations show that FirstService Corporation (NASDAQ:FSV) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. FirstService Corporation (NASDAQ:FSV) was in 14 hedge fund portfolios at the end of the first quarter of 2022, compared to 16 funds in the previous quarter. FirstService Corporation (NASDAQ:FSV) delivered a -19.35% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on FirstService Corporation (NASDAQ:FSV) 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.