Baron Funds, an asset management firm, published its “Baron Real Estate Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Baron Real Estate Fund (the “Fund”) declined 10.76% (Institutional Shares) in the first quarter of 2022, modestly outperforming its primary benchmark, the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”), which declined 11.03%. The Fund underperformed the MSCI US REIT Index (the “REIT Index”), which declined 4.28%. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Baron Real Estate Fund mentioned Boyd Gaming Corporation (NYSE:BYD) and explained its insights for the company. Founded in 1975, Boyd Gaming Corporation (NYSE:BYD) is a Las Vegas, Nevada-based gaming and hospitality company with a $6.0 billion market capitalization. Boyd Gaming Corporation (NYSE:BYD) delivered a -16.50% return since the beginning of the year, while its 12-month returns are down by -10.11%. The stock closed at $54.75 per share on May 23, 2022.
Here is what Baron Real Estate Fund has to say about Boyd Gaming Corporation (NYSE:BYD) in its Q1 2022 investor letter:
“Following strong share price performance in 2021, the shares of Boyd Gaming Corporation continued to perform well in the first quarter of 2022. Boyd is one of the largest and most successful casino entertainment companies in the U.S. The company owns and operates 28 casino gaming properties in 10 states with a large presence in Las Vegas and a geographic focus on the drive-to, leisure gaming customer. We remain optimistic about the prospects for Boyd’s shares because business conditions are strong, management maintains a liquid and conservatively capitalized balance sheet, insiders own approximately 27% of the company, the shares remain attractively valued at only 7.5 times 2022 estimated cash flow and a double-digit free cash flow yield, and we believe the company could be an attractive acquisition candidate should its current valuation remain discounted relative to recent private market casino and gaming transactions.”
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Our calculations show that Boyd Gaming Corporation (NYSE:BYD) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Boyd Gaming Corporation (NYSE:BYD) was in 34 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 37 funds in the previous quarter. Boyd Gaming Corporation (NYSE:BYD) delivered a -19.97% return in the past 3 months.
In March 2022, we also shared another hedge fund’s views on Boyd Gaming Corporation (NYSE:BYD) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.
