Baron Funds: “Americold (COLD) Trades at a Big Discount to its Private Asset Value”

Baron Funds, an asset management firm, published its “Baron Small Cap Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A return of 1.32% was delivered by the fund’s institutional shares for the third quarter of 2021. For the first nine months of the year, the Fund is up 10.65%. The Fund soundly beat the performance of the Russell 2000 Growth Index (the “Index”) in the quarter, which was down 5.65%, and for the year, with the Index up just 2.82%. The S&P 500 was up 0.58% for the quarter and is up 15.92% for the year, as large-cap stocks have outpaced small caps this year. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Baron Small Cap Fund, in its Q3 2021 investor letter, mentioned Americold Realty Trust (NYSE: COLD) and discussed its stance on the firm. Americold Realty Trust is an Atlanta, Georgia-based real estate investment trust company with an $8.6 billion market capitalization. COLD delivered a -13.18% return since the beginning of the year, while its 12-month returns are down by -3.63%. The stock closed at $32.41 per share on December 09, 2021.

Here is what Baron Small Cap Fund has to say about Americold Realty Trust  in its Q3 2021 investor letter:

Americold Realty Trust is one of the largest global owner/operators of cold storage warehouses. The stock fell as the company reported weak results for the third quarter in a row. The primary issue is that food producers are not able to produce enough to service customer demand and maintain inventory levels. It’s disappointing that this dynamic is now projected to persist, causing management to reduce guidance and lose face with investors. We think the long-term story and investment thesis remains intact, so are sticking with our position. The stock trades at a big discount to its private asset value.”

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Based on our calculations, Americold Realty Trust (NYSE: COLD) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. COLD was in 15 hedge fund portfolios at the end of the third quarter of 2021, compared to 16 funds in the previous quarter. Americold Realty Trust (NYSE: COLD) delivered a -10.27% return in the past 3 months.

Last October 2021, we also shared billionaire Howard Marks’ top 5 stock picks which included IBP in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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