U.S. markets closed
  • S&P 500

    +61.35 (+1.49%)
  • Dow 30

    +360.68 (+1.06%)
  • Nasdaq

    +304.99 (+2.32%)
  • Russell 2000

    +53.68 (+2.47%)
  • Crude Oil

    +1.69 (+2.65%)
  • Gold

    +20.00 (+1.10%)
  • Silver

    +0.46 (+1.69%)

    +0.0062 (+0.51%)
  • 10-Yr Bond

    -0.0330 (-1.98%)

    +0.0050 (+0.36%)

    -0.0870 (-0.08%)

    -2,903.54 (-5.80%)
  • CMC Crypto 200

    +39.77 (+2.93%)
  • FTSE 100

    +80.28 (+1.15%)
  • Nikkei 225

    +636.46 (+2.32%)

Is FirstService Corporation (FSV) A Smart Long-Term Buy?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Jose Karlo Mari Tottoc
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Alger, an investment management firm, published its “Alger Weatherbie Specialized Growth Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. During the quarter, the largest portfolio sector weightings were Information Technology and Health Care. The largest sector overweight was Financials. Class A shares of the Alger Weatherbie Specialized Growth Fund underperformed the Russell 2500 Growth Index during the first quarter of 2021. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Alger Weatherbie Specialized Growth Fund, in their Q1 2021 investor letter, mentioned FirstService Corporation (NASDAQ: FSV) and shared their insights on the company. FirstService Corporation is a Toronto, Canada-based public real estate services company that currently has a $7.1 billion market capitalization. Since the beginning of the year, FSV delivered a 19.02% return, extending its 12-month gains to 102.05%. As of April 19, 2021, the stock closed at $162.77 per share.

Here is what Alger Weatherbie Specialized Growth Fund has to say about FirstService Corporation in their Q1 2021 investor letter:

"FirstService Corp. was among the top contributors to performance during the first quarter of 2021. FirstService Corp. is a leading provider of property management services to owners and homeowners associations of residential communities and high-rise properties, as well as branded services such as California Closets and CertaPro Painters for residential homeowners and restoration services for commercial and residential customers. In February, FirstService posted strong results for the final quarter of 2020. Despite pressures due to the Covid-19 pandemic, an increase in home resales caused the company's First Service Residential unit to experience a recovery in ancillary services that generated improved organic growth. Ancillary services include maintenance for pools and fitness centers as well as amenity services for residential, commercial and hotel properties. FirstService Brands posted a significant upside surprise driven by very strong results in its restoration business resulting from heavier storm activity that occurred in the third quarter of 2020."

Africa Studio/Shutterstock.com

Our calculations show that FirstService Corporation (NASDAQ: FSV) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, FirstService Corporation was in 16 hedge fund portfolios, compared to 12 funds in the third quarter. FSV delivered a 17.37% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.