Baron Capital, an investment management company, released its Q4 2025 letter for its “Baron Real Estate Fund”. A copy of the letter is available to download here. Baron Real Estate Fund was recognized as the Best Real Estate Fund Over Three Years at the 2026 LSEG Lipper Funds Awards, reflecting the three-year performance ending December 31, 2025. The Fund declined 5.39% (Institutional Shares) in Q1, underperforming the MSCI USA IMI Extended Real Estate Index (−0.96%) and the MSCI US REIT Index (+4.52%). Despite the Q1 decline, the long-term performance remains strong. The letter covers current thoughts, portfolio composition, key themes, top contributors and detractors, recent activity, and outlook for real estate and the Fund. The Fund has a positive outlook on the broader equity market and public real estate, and maintains a constructive outlook with compelling reasons to stay the course. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Baron Real Estate Fund Strategy highlighted Public Storage (NYSE:PSA). Public Storage (NYSE:PSA) is a leading real estate investment trust that owns and operates self-storage facilities. On June 12, 2026, Public Storage (NYSE:PSA) closed at $324.71 per share. One-month return of Public Storage (NYSE:PSA) was 9.05%, and its shares gained 9.63% over the past 52 weeks. Public Storage (NYSE:PSA) has a market capitalization of $57.21 billion.
Baron Real Estate Fund stated the following regarding Public Storage (NYSE:PSA) in its Q1 2026 investor letter:
“During the quarter, we reestablished a position in Public Storage (NYSE:PSA) the best-in-class self-storage REIT with a portfolio of more than 3,500 U.S. properties. We had been cautious about self-storage for several years, given a prolonged period of flat to-negative growth. Our view has shifted. Recent due diligence suggests a fundamental inflection may be approaching — one where stabilizing demand and rents, combined with declining new supply, could drive a reacceleration in growth beginning in 2026….” (Click here to read the full text)
Public Storage (NYSE:PSA) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 39 hedge fund portfolios held Public Storage (NYSE:PSA) at the end of the first quarter, compared to 40 in the previous quarter. While we acknowledge the risk and potential of Public Storage (NYSE:PSA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PUBLIC STORAGE (NYSE:PSA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Public Storage (NYSE:PSA) and shared the list of most profitable stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
