Vulcan Value Partners Exited Its Stake in CBRE Group (CBRE) in Q3. Here’s Why

Investment management company Vulcan Value Partners recently released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was a good one for the portfolios. The absolute performance was positive across all the strategies, while the relative performance lagged. In the quarter, the Large Cap Composite returned 4.6% net of fees and expenses, the Small Cap Composite returned 4.1% net, the Focus Composite returned 3.7% net, the Focus Plus composite returned 3.7% and the All-Cap Composite returned 5.5% net. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Vulcan Value Partners highlighted stocks such as CBRE Group, Inc. (NYSE:CBRE). CBRE Group, Inc. (NYSE:CBRE) is a commercial real estate services and investment company. The one-month return of CBRE Group, Inc. (NYSE:CBRE) was -5.38%, and its shares gained 25.53% of their value over the last 52 weeks. On October 15, 2025, CBRE Group, Inc. (NYSE:CBRE) stock closed at $156.82 per share, with a market capitalization of $46.66 billion.

Vulcan Value Partners stated the following regarding CBRE Group, Inc. (NYSE:CBRE) in its third quarter 2025 investor letter:

“We sold one position during the quarter: CBRE Group, Inc. (NYSE:CBRE). CBRE Group Inc. was an excellent investment for us. As the world’s largest commercial real estate services company, CBRE has a market-leading position in leasing and property sales brokerage. It also has a large and growing recurring business, which includes facilities management, project management, and investment management. These businesses provide earnings stability during cyclical downturns in commercial real estate transactions. CBRE also benefits from robust diversification across asset classes, including office, industrial & logistics, life sciences, retail, and multifamily. We purchased shares in June 2022 at peak concern regarding the future of the office due to remote work, rising interest rates, and a weakening economy. Since then, less-transactional segments have continued to see strong growth, and leasing has largely recovered. While property sales remain below pre-COVID levels, CBRE expects its core EPS to achieve a new record in 2025. CBRE’s value grew over the course of our ownership, but its share price rose faster, and we reallocated capital to more discounted businesses.”

Is CBRE Group, Inc. (CBRE) the Best Real Estate Stock to Buy According to Billionaires?

CBRE Group, Inc. (NYSE:CBRE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 70 hedge fund portfolios held CBRE Group, Inc. (NYSE:CBRE) at the end of the second quarter, up from 60 in the previous quarter. While we acknowledge the risk and potential of CBRE Group, Inc. (NYSE:CBRE) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CBRE Group, Inc. (NYSE:CBRE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered CBRE Group, Inc. (NYSE:CBRE) and shared Baron Real Estate Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 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.