Third Avenue Management, an investment management company based in New York City, released its “Real Estate Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the first half of 2023, the fund returned +8.13% (after fees) versus +1.57% (before fees) for the Fund’s most relevant benchmark, the FTSE EPRA NAREIT Developed Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Third Avenue Real Estate Value Fund highlighted stocks like CBRE Group, Inc. (NYSE:CBRE) in the second quarter 2023 investor letter. Headquartered in Dallas, Texas, CBRE Group, Inc. (NYSE:CBRE) is a commercial real estate service and investment company. On July 28, 2023, CBRE Group, Inc. (NYSE:CBRE) stock closed at $82.40 per share. One-month return of CBRE Group, Inc. (NYSE:CBRE) was 0.73%, and its shares lost 2.75% of their value over the last 52 weeks. CBRE Group, Inc. (NYSE:CBRE) has a market capitalization of $25.613 billion.
Third Avenue Real Estate Value Fund made the following comment about CBRE Group, Inc. (NYSE:CBRE) in its second quarter 2023 investor letter:
“With the addition to JLL during the period, the Fund now has approximately 11% of its capital invested in Real Estate Services firms after factoring in CBRE Group, Inc. (NYSE:CBRE) and Savills plc. In the aggregate, these three businesses seem to offer a unique exposure in listed real estate as they nearly act as an oligopoly on essential services and inevitable transactions in key regions. They also seem well-positioned within the overall industry dynamic. Put otherwise, each of these well-financed businesses seems likely to gain market share within their existing segments (likely at the expense of certain large and less credit-worthy participants), as well as capitalize on other secular trends and ancillary opportunities longer-term (e.g., outsourcing, sustainability, “flex” offerings, et al)— a framework that is not dissimilar from the insurance brokerage or title insurance industries post “financial crisis” in Fund Management’s opinion.”
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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 which was 38 in the previous quarter.
We discussed CBRE Group, Inc. (NYSE:CBRE) in another article and shared Baron Real Estate Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
