Is Brookfield Property Partners (BPY) A Good Investment Choice?

Horos Asset Management, an investment management firm, published its first quarter 2021 investor letter – a copy of which can be downloaded here. A return of 21.5% was delivered by the Horos Value Internacional Fund for the Q1 of 2021, outperforming the Index, which appreciated 8.9% for the same period. The Horos Value Iberia returned 13.0%, beating the 5.4% rise of its benchmark  You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Horos Asset Management, in its Q1 2021 investor letter, mentioned Brookfield Property Partners L.P. (NASDAQ: BPY), and shared their insights on the company. Brookfield Property Partners L.P. is a Hamilton, Bermuda-based commercial real estate company that currently has a $17 billion market capitalization. Since the beginning of the year, BPY delivered a 26.99% return, extending its 12-month gains to 90.41%. As of May 14, 2021, the stock closed at $18.29 per share.

Here is what Horos Asset Management has to say about Brookfield Property Partners L.P. in its Q1 2021 investor letter:

“There have been significant portfolio changes this quarter in the real estate sector, with several new stakes, discussed below, and one corporate transaction. In particular, here we provide an update on the status of our investment in Brookfield Property Partners (“BPY”). In our latest quarterly letter, we noted that on January 4 the company received a takeover bid from Brookfield Asset Management (“BAM”) for the remaining shares it does not control, at a price of 16.5 dollars per share, which seemed too low to us. Hence, our intention was to decline the takeover bid and hold our shares, awaiting a potential increase in the offer price that BAM had in fact historically made in other similar acquisitions. Finally, on April 1, BAM announced it had increased its offer by 10% to 18.17 dollars per share. In this case, shareholders will have a choice of cash, BAM common stock or BPY preferred stock, limited to a maximum of 50% cash for the total offer, 42% for BAM common stock and 8% for BPY preferred stock. The offer price represents a discount to BPY’s NAV of 32%, very much in line with the historical average at which this vehicle has historically traded.”


Our calculations show that Brookfield Property Partners L.P. (NASDAQ: BPY) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Brookfield Property Partners L.P. was in 9 hedge fund portfolios, compared to 8 funds in the third quarter. BPY delivered a 3.61% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

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