Baron Real Estate Fund Exited Vulcan Materials Company (VMC) Due to Expected Near-Term Headwinds

Baron Funds, an investment management company, released its “Baron Real Estate Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund rose 7.07% (Institutional Shares) compared to a 2.39% return for the MSCI US REIT Index (the “REIT Index”) and a 4.73% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). The firm is optimistic about the prospects for the stock market, public real estate securities, and the fund. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Real Estate Fund highlighted stocks like Vulcan Materials Company (NYSE:VMC) in the first quarter 2023 investor letter. Headquartered in Birmingham, Alabama, Vulcan Materials Company (NYSE:VMC) is a construction aggregates producer and supplier. On June 27, 2023, Vulcan Materials Company (NYSE:VMC) stock closed at $220.42 per share. One-month return of Vulcan Materials Company (NYSE:VMC) was 12.75%, and its shares gained 53.84% of their value over the last 52 weeks. Vulcan Materials Company (NYSE:VMC) has a market capitalization of $29.329 billion.

Baron Real Estate Fund made the following comment about Vulcan Materials Company (NYSE:VMC) in its first quarter 2023 investor letter:

“In the most recent quarter, we significantly reduced our investments in the following companies due to expectations of near-term business headwinds and modest growth prospects, elevated valuations, and our view of superior investment opportunities for other real estate-related companies:

Vulcan Materials Company (NYSE:VMC) is a real estate-related company that is the largest construction aggregates producer in the U.S.”

Vulcan Materials Company (NYSE:VMC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Vulcan Materials Company (NYSE:VMC) at the end of first quarter 2023 which was 43 in the previous quarter.

We discussed Vulcan Materials Company (NYSE:VMC) in another article and shared the list of largest construction companies in the US. In addition, please check out our hedge fund investor letters Q1 2023 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.