Here’s Why CBRE Group (CBRE) is Managing Data Centres

Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Real Estate Value Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. In the calendar year's first quarter, the fund returned +2.81% (after fees) versus -1.11% (before fees) for the Fund’s most relevant benchmark, the FTSE EPRA NAREIT Developed Index. The Fund reported an annualized return of +8.68% (after fees) since its inception more than twenty-five years ago. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Third Avenue Real Estate Value Fund highlighted stocks like CBRE Group, Inc. (NYSE:CBRE), in the first quarter 2024 investor letter. CBRE Group, Inc. (NYSE:CBRE) a commercial real estate services and investment company. The one-month return of CBRE Group, Inc. (NYSE:CBRE) was 1.45%, and its shares gained 10.71% of their value over the last 52 weeks. On June 27, 2024, CBRE Group, Inc. (NYSE:CBRE) stock closed at $ 88.50 per share with a market capitalization of $ 27.154 billion.

Third Avenue Real Estate Value Fund stated the following regarding CBRE Group, Inc. (NYSE:CBRE) in its first quarter 2024 investor letter:

"Data Center Services: As data centers have evolved into a distinct sub-set of many real estate mandates, the services provided for “more traditional” property types have expanded into this niche sector. As a result, some of the leading real estate services companies (including Fund holdings CBRE Group, Inc. (NYSE:CBRE), JLL, and Savills plc) have dedicated teams with the capabilities to support facilities management, leasing, advisory, investment sales, and other solutions. Such activity requires limited capital investment but can generate meaningful recurring revenues and transactional fees. For example, CBRE manages approximately 700 data centers globally and has advised on more than $6.0 billion of data center transactions."

A downtown skyline, highlighting a successful real estate services company.

CBRE Group, Inc. (NYSE:CBRE) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held CBRE Group, Inc. (NYSE:CBRE) at the end of the first quarter which was 49 in the previous quarter. While we acknowledge the potential of CBRE Group, Inc. (NYSE:CBRE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

We discussed CBRE Group, Inc. (NYSE:CBRE) in another article and shared the list of biggest real estate companies in the US in 2024. In addition, please check out our hedge fund investor letters Q1 2024 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.