Baron Real Estate Fund Trimmed American Tower Corporation (AMT) to Manage the Position Size

Baron Funds, an investment management company, released its “Baron Real Estate Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 3.61% (Institutional Shares) in the quarter compared to a 1.46% decline for the MSCI US REIT Index (the REIT Index) and a 6.13% gain for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as American Tower Corporation (NYSE:AMT). American Tower Corporation (NYSE:AMT) is a leading independent multitenant communications real estate operator. The one-month return of American Tower Corporation (NYSE:AMT) was -4.35%, and its shares lost 9.61% of their value over the last 52 weeks. On August 1, 2025, American Tower Corporation (NYSE:AMT) stock closed at $212.10 per share, with a market capitalization of $99.316 billion.

Baron Real Estate Fund stated the following regarding American Tower Corporation (NYSE:AMT) in its second quarter 2025 investor letter:

“American Tower Corporation (NYSE:AMT) was one of the Fund’s top purchases early in the first quarter. Shares performed well and in a more compressed timeline than we had anticipated. We modestly reduced our investment to manage overall position sizing while sourcing capital for other investment opportunities. American Tower is a global owner of 150,000 wireless tower communication sites with a heavy emphasis on developed markets. Our optimism regarding the long-term growth prospects for American Tower remain unchanged given strong secular growth expectations for mobile data usage, 5G spectrum deployment and network densification (with 6G around the corner), edge computing (possible requirement of mini data centers next to a tower presents an additional revenue opportunity), and growth in connected Internet of Things devices (e.g. homes and cars), which will require more wireless bandwidth usage and continued increased spending by the mobile carriers.”

American Tower Corporation’s (AMT) Dividend Strength and Valuation Make it a Strong Buy in 2025

A wide angled view of a high-rise office building, the windows reflecting a nearby cityscape.

American Tower Corporation (NYSE:AMT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held American Tower Corporation (NYSE:AMT) at the end of the first quarter which was 70 in the previous quarter. While we acknowledge the risk and potential of American Tower Corporation (NYSE:AMT) 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 AMERICAN TOWER CORPORATION (NYSE:AMT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered American Tower Corporation (NYSE:AMT) and shared the list of best strong buy stocks that pay dividends. In addition, please check out our hedge fund investor letters Q2 2025 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.