What Makes FirstService Corporation (FSV) an Investment Bet?

Third Avenue Management, an investment management company based in New York City, released its “Third Avenue Real Estate Value Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Third Avenue Real Estate Value Fund posted a return of +11.61% (after fees) in the calendar year, compared to the MSCI ACWI IMI Core Real Estate Index’s +9.86% (before fees) return. Since its inception in 1998, the Fund has generated an annualized return of +8.96% (after fees). This year marks the 40th anniversary of Third Avenue Management, highlighting its commitment to its core principles and its adaptability in seeking long-term wealth creation for its clients. The Fund had 40.3% of its capital invested in U.S.-based companies, 27.5% in North American-based companies, 27.6% in International Real Estate companies, and the remaining 4.6% in Cash, Debt & Options. The Fund anticipates that the next five years may resemble the early 2000s, a time characterized by attractive valuations in U.S.-listed real estate. Please review the Portfolio’s top five holdings to gain insights into their key selections for 2025.

 In its fourth-quarter 2025 investor letter, Third Avenue Real Estate Value Fund highlighted stocks such as FirstService Corporation (NASDAQ:FSV). FirstService Corporation (NASDAQ:FSV) is a Canadian real estate services company that offers residential property management and other essential property services. On March 06, 2026, FirstService Corporation (NASDAQ:FSV) stock closed at $148.81 per share. One-month return of FirstService Corporation (NASDAQ:FSV) was -9.42%, and its shares lost 10.36% over the past 52 weeks. FirstService Corporation (NASDAQ:FSV) has a market capitalization of $6.843 billion.

Third Avenue Real Estate Value Fund stated the following regarding FirstService Corporation (NASDAQ:FSV) in its fourth quarter 2025 investor letter:

"The Fund initiated a position in the common stock of another enterprise that is well-versed in resource conversion: FirstService Corporation (NASDAQ:FSV) (“FirstService”).

Founded in 1989, FirstService is a Canadian-based real estate services company with two key business segments: FirstService Residential and FirstService Brands. Through the residential segment, the company is the largest provider of property management and ancillary services for residential communities in North America, with a particular focus on serving condominiums, homeowner’s associations (“HOA’s”), and master planned communities. FirstService also has a well-established presence within its brands segment, where the company is a leading provider of services for commercial properties, including essential functions such as restoration, roofing, and fire protection.

In addition to controlling these strategic platforms, FirstService meets the Real Estate team’s key investment criteria. That is to say, the company is very conservatively capitalized with a net-debt-to-asset ratio of less than 10%, a fixed-charge coverage ratio of nearly 7.0 times, and ample free cash flow with minimal “capex”. FirstService is also very well-managed and run by an aligned control group that shares a long-term view. In fact, insiders own approximately 10% of the company, and the team has compounded book value per share by 20% per year over the past 10 years, including dividends…” (Click here to read the full text)

FirstService Corporation (NASDAQ:FSV) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 33 hedge fund portfolios held FirstService Corporation (NASDAQ:FSV) at the end of the fourth quarter, up from 25 in the previous quarter. While we acknowledge the potential of FirstService Corporation (NASDAQ:FSV) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered FirstService Corporation (NASDAQ:FSV) and shared Conestoga Capital Advisors' views on the company. In addition, please check out our hedge fund investor letters Q4 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.