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Here’s Why CBRE Group (CBRE) is Managing Data Centres

Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Real Estate Value Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the calendar year’s first quarter, the fund returned +2.81% (after fees) versus -1.11% (before fees) for the Fund’s most relevant benchmark, the FTSE EPRA NAREIT Developed Index. The Fund reported an annualized return of +8.68% (after fees) since its inception more than twenty-five years ago. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Third Avenue Real Estate Value Fund highlighted stocks like CBRE Group, Inc. (NYSE:CBRE), in the first quarter 2024 investor letter. CBRE Group, Inc. (NYSE:CBRE) a commercial real estate services and investment company. The one-month return of CBRE Group, Inc. (NYSE:CBRE) was 1.45%, and its shares gained 10.71% of their value over the last 52 weeks. On June 27, 2024, CBRE Group, Inc. (NYSE:CBRE) stock closed at $ 88.50 per share with a market capitalization of $ 27.154 billion.

Third Avenue Real Estate Value Fund stated the following regarding CBRE Group, Inc. (NYSE:CBRE) in its first quarter 2024 investor letter:

“Data Center Services: As data centers have evolved into a distinct sub-set of many real estate mandates, the services provided for “more traditional” property types have expanded into this niche sector. As a result, some of the leading real estate services companies (including Fund holdings CBRE Group, Inc. (NYSE:CBRE), JLL, and Savills plc) have dedicated teams with the capabilities to support facilities management, leasing, advisory, investment sales, and other solutions. Such activity requires limited capital investment but can generate meaningful recurring revenues and transactional fees. For example, CBRE manages approximately 700 data centers globally and has advised on more than $6.0 billion of data center transactions.”

A downtown skyline, highlighting a successful real estate services company.

CBRE Group, Inc. (NYSE:CBRE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held CBRE Group, Inc. (NYSE:CBRE) at the end of the first quarter which was 49 in the previous quarter. While we acknowledge the potential of CBRE Group, Inc. (NYSE:CBRE) 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.

We discussed CBRE Group, Inc. (NYSE:CBRE) in another article and shared the list of biggest real estate companies in the US in 2024. In addition, please check out our hedge fund investor letters Q1 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.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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