Baron Funds, an asset management company, released its “Baron Real Estate Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Real Estate Fund (the “Fund”) declined 20.62% (Institutional Shares) in the second quarter of 2022, underperforming its primary benchmark, the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”), which declined 17.12%. The Fund underperformed the MSCI US REIT Index (the “REIT Index”), which declined 17.16%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
In its Q2 2022 investor letter, Baron Real Estate Fund mentioned Blackstone Inc. (NYSE:BX) and explained its insights into the company. Founded in 1985, Blackstone Inc. (NYSE:BX) is a New York City-based investment banking company with a $122.6 billion market capitalization. Blackstone Inc. (NYSE:BX) delivered a -26.30% return since the beginning of the year, while its 12-month returns are down by -29.15%. The stock closed at $95.36 per share on September 14, 2022.
Here is what Baron Real Estate Fund has to say about Blackstone Inc. (NYSE:BX) in its Q2 2022 investor letter:
“In the most recent quarter, we continued to acquire shares in Blackstone Inc. We have long admired Blackstone because we believe the company embodies several of the characteristics of a truly great business. Blackstone has a premier brand, a global franchise, and loyal customers. The company is fast growing with limited needs for capital, produces high-cash-flow margins, and is anchored by a recurring revenue base. Led by the highly talented CEO Stephen Schwarzman and President Jon Gray, the company attracts and retains excellent talent.
The company is the largest real estate manager in the world with an impressive investment track record. Approximately 40% of its fee-earning inflows are derived from real estate. Following a more than 20% correction in Blackstone’s share price from November 2021 into early 2022, we used the opportunity to establish a position during the first quarter. With its 5.7% dividend yield and strong prospects for growth, we are optimistic about the long-term potential for the Fund’s investment in Blackstone.”
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Our calculations show that Blackstone Inc. (NYSE:BX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Blackstone Inc. (NYSE:BX) was in 61 hedge fund portfolios at the end of the second quarter of 2022, compared to 61 funds in the previous quarter. Blackstone Inc. (NYSE:BX) delivered a -1.49% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.
