Baron Funds: “We Expect Equity LifeStyle (ELS)’s Business Results to be Resilient”

Baron Funds, an asset management company, released its “Baron Real Estate Income Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Real Estate Income Fund (the “Fund”) declined 18.43% (Institutional Shares) in the second quarter of 2022, modestly underperforming its primary benchmark, the MSCI US REIT Index (the “REIT Index”), which declined 17.16%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Real Estate Income Fund mentioned Equity LifeStyle Properties, Inc. (NYSE:ELS) and explained its insights for the company. Founded in 1992, Equity LifeStyle Properties, Inc. (NYSE:ELS) is a Chicago, Illinois-based real estate investment trust company with a $13.7 billion market capitalization. Equity LifeStyle Properties, Inc. (NYSE:ELS) delivered a -19.69% return since the beginning of the year, while its 12-month returns are down by -13.88%. The stock closed at $70.40 per share on September 16, 2022.

Here is what Baron Real Estate Income Fund has to say about Equity LifeStyle Properties, Inc. (NYSE:ELS) in its Q2 2022 investor letter:

Equity Lifestyle Properties is part of a niche real estate category that we expect to continue to benefit from favorable demand and supply dynamics. The company is the beneficiary of strong demand from budget-conscious home buyers such as retirees and millennials, and negligible new inventory due to high development barriers. Demand for affordable outdoor vacations (recreational vehicles) also remains strong. Equity Lifestyle Properties has strong long-term cash flow growth prospects and low capital expenditure needs. If the macroeconomic environment worsens, we expect business results to be resilient due to each company’s focus on affordable housing and affordable outdoor vacations.”

Real Estate

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Our calculations show that Equity LifeStyle Properties, Inc. (NYSE:ELS) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Equity LifeStyle Properties, Inc. (NYSE:ELS) was in 21 hedge fund portfolios at the end of the second quarter of 2022, compared to 23 funds in the previous quarter. Equity LifeStyle Properties, Inc. (NYSE:ELS) delivered a 0.89% return in the past 3 months.

In May 2021, we also shared another hedge fund’s views on Equity LifeStyle Properties, Inc. (NYSE:ELS) in another article. 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.