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Is JBG SMITH Properties (JBGS) A Great Investment Choice?

Third Avenue Management, an investment management firm, published its “Real Estate Value Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. A return of +10.70% was recorded by the fund for the Q1 of 2021, outperforming the benchmark, FTSE EPRA NAREIT Developed Index, that rose to +6.11% for the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Third Avenue Management, in its Real Estate Value Fund Q1 2021 investor letter, mentioned JBG SMITH Properties (NYSE: JBGS), and shared their insights on the company. JBG SMITH Properties is a Chevy Chase, Maryland-based real estate investment trust company that currently has a $4.2 billion market capitalization. Since the beginning of the year, JBGS delivered a 1.06% return, extending its 12-month gains to 10.76%. As of May 11, 2021, the stock closed at $32.00 per share.

Here is what Third Avenue Management has to say about JBG SMITH Properties in its Q1 2021 investor letter:

"JBG Smith Properties, Inc. (a U.S.-based real estate investment trust that is among the largest commercial real estate owners in the Washington, D.C. area with more than 25 million square feet of office, multifamily, and retail space including future developments) converting a portion of its extensive land holdings to a more productive use by commencing construction on a residential tower in the National Landing sub-market, as well as beginning infrastructure work on the Virginia Tech Institute in the adjacent Potomac Yard division. Through these activities, JBG Smith’s thoughtful business plan is being carried out at the direction of CEO Matthew Kelly by investing capital at compelling yields on its development spend due to a low-cost land position, as well as further strengthening the appeal of the area that will serve as Amazon’s “HQ-2” where the company not only controls roughly 9 million square feet of existing space but land that can accommodate an additional 8 million square feet of development opportunities."

Office REIT Stocks SLG NSAM building business new york dawn vivid
Office REIT Stocks SLG NSAM building business new york dawn vivid

Stuart Monk / shutterstock.com

Our calculations show that JBG SMITH Properties (NYSE: JBGS) 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, JBG SMITH Properties was in 16 hedge fund portfolios, compared to 17 funds in the third quarter. JBGS delivered a -2.22% 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.