Would You Still Consider Investing in Reology Holdings (RLGY)?

East 72, an investment management firm, published its first-quarter 2022 investor letter – a copy of which can be downloaded here.  A quarterly gross portfolio return of -11.4% was recorded by the fund for the first quarter of 2022 and was able to have a rolling twelve-month gross return of -6%. 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, East 72 Holdings Limited mentioned Realogy Holdings Corp. (NYSE:RLGY) and explained its insights for the company. Founded in 2006, Realogy Holdings Corp. (NYSE:RLGY)  is a Madison, New Jersey-based real estate and relocation services company with a $1.5 billion market capitalization. Realogy Holdings Corp. (NYSE:RLGY)  delivered a -19.63% return since the beginning of the year, while its 12-month returns are down by -11.93%. The stock closed at $13.51 per share on April 11, 2022.

Here is what East 72 Holdings Limited has to say about Realogy Holdings Corp. (NYSE:RLGY) in its Q1 2022 investor letter:

“Investors don’t like listed real estate brokers – at all. There are three significant US listed residential real estate brokers or franchisors (which includes)Reology Holdings (RLGY: market capitalisation US$1.8billion + >$2.1billion of debt adjusted for the recent title insurance underwriting sale) which is a traditional real estate broker/franchisor operating under the Century 21, Coldwell Banker, Sotheby’s and ERA (differentiated) brands with some 335,000 agents globally across 119 countries. RLGY business trades at a mere 4.5x operating EBITDA for 2021 reflecting the operating leverage, perceived state of US residential property market and high debt.”

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Our calculations show that Realogy Holdings Corp. (NYSE:RLGY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Realogy Holdings Corp. (NYSE:RLGY) was in 20 hedge fund portfolios at the end of the first quarter of 2022, compared to 20 funds in the previous quarter. Realogy Holdings Corp. (NYSE:RLGY) delivered a -18.27% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Realogy Holdings Corp. (NYSE:RLGY) 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.