Is it Still Fine to Invest in RE/MAX Holdings (RMAX)?

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 RE/MAX Holdings, Inc. (NYSE:RMAX) and explained its insights for the company. Founded in 1973, RE/MAX Holdings, Inc. (NYSE:RMAX)  is a Denver, Colorado-based real estate agents and managers company with an $816.7 million market capitalization. RE/MAX Holdings, Inc. (NYSE:RMAX)  delivered a -14.59% return since the beginning of the year, while its 12-month returns are down by -35.89%. The stock closed at $26.04 per share on April 11, 2022.

Here is what East 72 Holdings Limited has to say about RE/MAX Holdings, Inc. (NYSE:RMAX) 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) Re/Max (RMAX: market capitalisation US$511million + >$450m of debt) which operates a 100% franchise system encompassing 142,000 agents plus a mortgage franchise business; RMAX hands out significant equity compensation and the business trades at ~11.3x EV/EBITDA for 2021.”

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Our calculations show that RE/MAX Holdings, Inc. (NYSE:RMAX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. RE/MAX Holdings, Inc. (NYSE:RMAX) was in 6 hedge fund portfolios at the end of the first quarter of 2022, compared to 8 funds in the previous quarter. RE/MAX Holdings, Inc. (NYSE:RMAX) delivered a -12.79% return in the past 3 months. You can find more 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.