Here’s What Attracted Vulcan Value Partners to Colliers International Group (CIGI)
Investment management company Vulcan Value Partners recently released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. Although the firm is pleased with the results, the quarterly results were mixed during the quarter. The firm capitalized on stock price volatility by allocating capital to companies with better price-to-value ratios. In the quarter, the fund’s Large Cap Composite returned 8.2% net of fees and expenses, the Small Cap Composite returned 9.1% net, the Focus Composite returned 5.6% net, the Focus Plus composite returned 5.9% and the All-Cap Composite returned 8.1% net. For more information on the fund’s best picks in 2024, please check its top five holdings.
Vulcan Value Partners highlighted stocks like Colliers International Group Inc. (NASDAQ:CIGI) in the third quarter 2024 investor letter. Colliers International Group Inc. (NASDAQ:CIGI) is a commercial real estate professional and investment management services provider. The one-month return of Colliers International Group Inc. (NASDAQ:CIGI) was 0.58%, and its shares gained 70.20% of their value over the last 52 weeks. On October 15, 2024, Colliers International Group Inc. (NASDAQ:CIGI) stock closed at $149.69 per share with a market capitalization of $7.708 billion.
Vulcan Value Partners stated the following regarding Colliers International Group Inc. (NASDAQ:CIGI) in its Q3 2024 investor letter:
"Colliers International Group Inc. (NASDAQ:CIGI) is a commercial real estate services and investment business. We are attracted to the business because of the diversification of its earnings, which provides stability to an otherwise cyclical business, and its asset light business model, which produces solid free cash flow. Additionally, Colliers is run by a capable and well-aligned management team. The company continues to perform well. Despite real estate transaction volumes still bouncing around trough levels, earnings are approaching record levels, highlighting the secular growth in the rest of the business. The recent decrease in interest rates should help improve transaction volumes and earnings."
An experienced property manager overseeing tenants in an apartment complex.
Colliers International Group Inc. (NASDAQ:CIGI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held Colliers International Group Inc. (NASDAQ:CIGI) at the end of the second quarter which was 17 in the previous quarter. Colliers International Group Inc.'s (NASDAQ:CIGI) second quarter revenue was $1.1 billion, up 6% year-over-year. While we acknowledge the potential of Colliers International Group Inc. (NASDAQ:CIGI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Colliers International Group Inc. (NASDAQ:CIGI) and shared Vulcan Value Partner's views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.