2. Colliers International Group Inc. (NASDAQ:CIGI)
NewGen Asset Management’s Stake Value: $11.49 million
Percentage of NewGen Asset Management’s 13F Portfolio: 6.45%
Number of Hedge Fund Holders: 16
Colliers International Group Inc. (NASDAQ:CIGI) is an investment management company headquartered in Ontario, Canada. The company’s primary focus is real estate brokerage and management services. Furthermore, Colliers International Group Inc. (NASDAQ:CIGI) works in 68 countries worldwide and employs more than 15,000 people.
On October 26, the company’s price target was raised to $180 from $160 by RBC Capital analyst Matt Logan who kept an Outperform rating on Colliers International Group Inc.’s (NASDAQ:CIGI) shares.
Zachary Sternberg and Benjamin Stein’s Spruce House Investment Management holds the most valuable stake in Colliers International Group Inc. (NASDAQ:CIGI) with 2.475 million shares worth $316.4 million, representing 8.19% of their portfolio.
LRT Capital Management mentioned Colliers International Group Inc. (NASDAQ:CIGI) in their second-quarter 2021 investor letter. Here is what it said:
“Colliers International Group is a commercial real estate brokerage and investment management company founded by Jay S. Hennick in 1976 in Toronto, Canada. From humble beginnings, the company has grown, primarily through acquisitions, to become one of the five largest commercial real estate brokerages in the world (the others being CBRE, Jones Lang LaSalle, Cushman & Wakefield, and Savills). The company today offers a full range of services and reports in the following segments: Outsourcing & Advisory (45% of revenue; this includes Engineering & Design services, Valuation services, and Property Management), Capital Markets (25% of revenue), Commercial Real Estate Leasing (24% of revenue), and Investment Management (6% of revenue). The company believes that about half of its revenue is recurring in nature. The Investment Management segment deserves special attention, as it is the result of an acquisition of the real estate investment management company Harrison Street in 2018. While the segment contributes the smallest part of revenues, it has a very high margin, contributing over 17% of the company’s EBITDA.
Colliers has historically grown by acquisition and we expect it to continue to do so. The real estate services market is highly fragmented outside of North America presenting ample opportunities for Colliers to continue its growth strategy. The company has been a good steward of shareholder capital and spun out FirstService Residential (FSV) in 2014 to maximize the value of that business. This spinout accounts for the drop in revenue in 2014 seen in the chart below.
Shares are +44.34% year-to-date and +133.44% over the past twelve months.”
