CBRE Group (CBRE) Rose on Improving Interest Rate Outlook

Investment management company Vulcan Value Partners recently released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. All five investing strategies outperformed their respective benchmarks and produced strong double-digit annual returns that were far higher than inflation. Additionally, the firm is happy with the fourth quarter’s outcomes. All of the investment strategies produced double-digit returns and all of them except Small Cap beat their respective benchmarks. In the quarter, the fund’s Large Cap Composite returned 18.4% net of fees and expenses, the Small Cap Composite returned 13.0% net, the Focus Composite returned 20.0% net, the Focus Plus composite returned 19.8% (net), and the All-Cap Composite returned 18.5% net. You can check the top 5 holdings of the fund to know its best picks in 2023.

Vulcan Value Partners featured stocks such as CBRE Group, Inc. (NYSE:CBRE) in the fourth quarter 2023 investor letter. Headquartered in Dallas, Texas, CBRE Group, Inc. (NYSE:CBRE) is a commercial real estate service and investment company. On January 17, 2024, CBRE Group, Inc. (NYSE:CBRE) stock closed at $83.60 per share. One-month return of CBRE Group, Inc. (NYSE:CBRE)was -8.64%, and its shares gained 0.25% of their value over the last 52 weeks. CBRE Group, Inc. (NYSE:CBRE)has a market capitalization of $25.481 billion.

Vulcan Value Partners stated the following regarding CBRE Group, Inc. (NYSE:CBRE) in its fourth quarter 2023 investor letter:

CBRE Group, Inc. (NYSE:CBRE) is the world’s largest commercial real estate services and investment firm. It is no secret that 2022 and 2023 have been very challenging years for commercial real estate, driven by a severe decline in property sales and leasing transactions. While property sales revenue and leasing revenue were down significantly in the third quarter, this was partially offset by continued double-digit growth in CBRE’s facilities and project management business. During the last two months of 2023, we saw significant appreciation in CBRE’s stock price, most likely due to an improving interest rate outlook, which the company believes will spur commercial real estate owners and investors to begin transacting again. We continue to believe CBRE is a great business with bright prospects and will emerge from the commercial real estate downturn in a stronger place competitively.”

Aerial view of a commercial real estate development in progress, showcasing the company’s mastery of the sector.

CBRE Group, Inc. (NYSE:CBRE)is not our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held CBRE Group, Inc. (NYSE:CBRE)at the end of third quarter which was 48 in the previous quarter.

We discussed CBRE Group, Inc. (NYSE:CBRE)in another article and shared the list of US cities with the highest rental vacancy rates. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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