Baron Funds, an asset management company, released its “Baron Discovery Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund was down 22.66% in the second quarter, 3.41% below its benchmark index, the Russell 2000 Growth Index. The firm focuses more on secular growth stories instead of cyclical companies. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Baron Funds discussed stocks like Rexford Industrial Realty, Inc. (NYSE:REXR) in the second quarter investor letter. Rexford Industrial Realty, Inc. (NYSE:REXR) is a real estate investment trust. On September 12, 2022, Rexford Industrial Realty, Inc. (NYSE:REXR) stock closed at $65.51 per share. One-month return of Rexford Industrial Realty, Inc. (NYSE:REXR) was -4.31% and its shares gained 8.28% of their value over the last 52 weeks. Rexford Industrial Realty, Inc. (NYSE:REXR) has a market capitalization of $11.593 billion.
Here is what Baron Funds specifically said about Rexford Industrial Realty, Inc. (NYSE:REXR) in its Q2 2022 investor letter:
“Rexford Industrial Realty, Inc. (NYSE:REXR), an owner and operator of industrial properties in Southern California, was a detractor in the second quarter. Despite a strong fundamental backdrop in Rexford’s core markets, the company’s stock was impacted by Amazon’s (AMZN) announcement that it was curtailing new warehouse construction and even considering sub-leasing a portion of its existing warehouse footprint due to excess fulfillment capacity.
This announcement led to a sharp correction in the stock prices of all industrial warehouse real estate companies (including Rexford), as investors grew concerned that a broader demand slowdown could develop and negatively impact industrial warehouse fundamentals. Our diligence suggests that the demand outlook for industrial warehouses in Rexford’s markets remains healthy, and we expect market fundamentals to remain supportive of rent and cash flow growth, even after factoring in less demand from Amazon.
It is also important to note that our expectations for Rexford’s growth in future periods do not rely on Amazon (Amazon currently represents less than 1% of Rexford’s rents).”
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Rexford Industrial Realty, Inc. (NYSE:REXR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Rexford Industrial Realty, Inc. (NYSE:REXR) at the end of the second quarter which was 22 in the previous quarter.
We discussed Rexford Industrial Realty, Inc. (NYSE:REXR) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.
