5 Best Real Estate and Realty Stocks To Buy According To Hedge Funds

In this article, we discuss the 5 best commercial real estate stocks to buy according to hedge funds. If you wish to go through our detailed analysis of the real estate market, check out the 13 Best Real Estate and Realty Stocks to Buy According to Hedge Funds.

5. Equinix, Inc. (NASDAQ:EQIX)

Number of Hedge Fund Holders: 44

Equinix, Inc. (NASDAQ:EQIX) is a multinational corporation headquartered in Redwood City, California, with a core focus on Internet connectivity and data center services. As a prominent figure in the worldwide colocation data center industry, Equinix, Inc. (NASDAQ:EQIX) offers businesses access to vital sites, strategic partnerships, and avenues that facilitate the rapid and streamlined expansion of their digital services.

As of the end of the second quarter of 2023, 44 hedge funds in Insider Monkey’s database were long Equinix, Inc. (NASDAQ:EQIX). The most significant hedge fund stakeholder of Equinix, Inc. (NASDAQ:EQIX) was Ian Simm’s Impax Asset Management which owns a $417.54 million stake in the company.

Baron Real Estate Fund made the following comment about Equinix, Inc. (NASDAQ:EQIX) in its second quarter 2023 investor letter:

“We recently increased the Fund’s exposure to data center REITs by acquiring additional shares in Equinix, Inc. (NASDAQ:EQIX) and re-initiating a position in Digital Realty Trust, Inc.

Data center landlords such as Equinix and Digital Realty are benefiting from record low vacancy, demand outpacing supply, more constrained power availability, and rising rental rates. Several secular demand vectors, which are currently broadening, are contributing to robust fundamentals for data center space globally. They include the outsourcing of information technology infrastructure, increased cloud computing adoption, the ongoing growth in mobile data and internet traffic, and artificial intelligence as a new wave of data center demand. Put simply, each year data continues to grow exponentially, and all of this data needs to be processed, transmitted, and stored – supporting increased demand for data center space. In addition, while it is still early innings, we believe artificial intelligence could not only provide a source of incremental demand but also further accelerate existing secular trends by driving increased prioritization and additional investment in digital transformation among enterprises.

We recently spent time with the management teams at both Equinix and Digital Realty and are optimistic about their prospects. We believe Equinix, the premier global operator of network-dense, carrier-neutral colocation data centers, is well positioned to grow its cash flow per share by more than 10% annually for the next few years.”