Reasons to Invest in CBRE Group (CBRE)

The London Company, an investment management company, released “The London Company Mid Cap Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 6.5% gross, (6.4% net) compared to a 4.1% return for the Russell Midcap Index. The outperformance of the fund is due to strong stock selection and limited exposure to banks. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

The London Company Mid Cap Strategy highlighted stocks like CBRE Group, Inc. (NYSE:CBRE) in the first quarter 2023 investor letter. Headquartered in Dallas, Texas, CBRE Group, Inc. (NYSE:CBRE) is a commercial real estate service and investment company. On June 29, 2023, CBRE Group, Inc. (NYSE:CBRE) stock closed at $80.30 per share. One-month return of CBRE Group, Inc. (NYSE:CBRE) was 4.11%, and its shares gained 6.09% of their value over the last 52 weeks. CBRE Group, Inc. (NYSE:CBRE) has a market capitalization of $24.96 billion.

The London Company Mid Cap Strategy made the following comment about CBRE Group, Inc. (NYSE:CBRE) in its first quarter 2023 investor letter:

“Initiated: CBRE Group, Inc. (NYSE:CBRE) – CBRE is the largest commercial real estate (CRE) service provider in a highly fragmented, >$340B global market. It provides multiple integrated real estate services for owners and tenants including consulting, transactional work (property sales and leasing), facility management services, and more. The inflow of institutional investors and demand for outsourcing facility services are structural and secular tailwinds. CBRE is well positioned to benefit from these trends and gain share due to its impressive competitive advantages, which include unmatched scale, robust transaction data, service bundling capabilities, and its one- stop-shop offering for CRE needs. CBRE’s diversification strategy and shift in its advisory business have created better stability & higher quality earnings. Recent weakness created an opportunity for us to own the #1 player in an industry with long-term tailwinds and where scale is a key element of success.”

CBRE Group, Inc. (NYSE:CBRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held CBRE Group, Inc. (NYSE:CBRE) at the end of first quarter 2023 which was 38 in the previous quarter.

We discussed CBRE Group, Inc. (NYSE:CBRE) in another article and Baron Real Estate Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.