Top 5 Stock Picks of Leon Lowenstein’s Lionstone Capital Management

4. FirstService Corporation (NASDAQ:FSV)

Lionstone Capital Management’s Stake Value: $29,419,000

Percentage of Lionstone Capital Management’s 13F Portfolio: 7.69%

Number of Hedge Fund Holders: 13

FirstService Corporation (NASDAQ:FSV), a Toronto-based residential real estate company, posted its Q3 earnings on October 26, with EPS for the quarter coming in at $1.50, topping estimates by $0.29. Revenue in the period totaled $849.43 million, up 14.49% year-over-year. 

Lowenstein’s Lionstone Capital Management owns 163,006 shares in FirstService Corporation (NASDAQ:FSV), worth $29.4 million, representing 7.69% of the firm’s Q3 portfolio. 

The largest FirstService Corporation (NASDAQ:FSV) stakeholder as per Insider Monkey’s database of elite funds is Jim Simons’ Renaissance Technologies, with a $151.1 million stake in the company. Overall, 13 hedge funds were long FirstService Corporation (NASDAQ:FSV) as of June this year. 

Alger Weatherbie Specialized Growth Fund mentioned FirstService Corporation (NASDAQ:FSV) in its Q2 2021 investor letter. Here is what the fund said:

“FirstService Corp. was among the top contributors to performance. FirstService is a leading provider of property management services to owners and homeowners associations of community and high-rise properties, as well as branded services such as California Closets and CertaPro Painters for homeowners. FirstService continues to extend its significant scale advantage by using its free cash flow and strong balance sheet to complete value-enhancing acquisitions within the property management industry. We believe its ability to provide a greater breadth of higher quality services has positioned the company to gain significant market share.

The company reported another quarter with mid single-digit revenue growth as expected, while its profit margin improvement exceeded expectations, a result of strong results for its services that support transfer of property ownership during a time period when the company’s amenities services experienced seasonal weakness. Additionally, the company has been building momentum with its branded services such as California Closets as homeowners increasingly embrace do it for me rather than do it yourself. The company also united its restoration subsidiaries under a single brand called ‘First Onsite.’”