Baron Capital, an investment management company, released its Q4 2025 letter for its “Baron Real Estate Income Fund”. A copy of the letter can be downloaded here. In 2025, the Fund appreciated 3.74% (Institutional Shares), exceeding the 1.68% gain for the MSCI US REIT Index (the REIT Index). In Q4 2025, the Fund declined modestly by 0.40%, outperforming the Index’s 1.99% decline. In contrast to the substantial double-digit growth delivered in 2023 and 2024, the Fund’s modest performance in 2025 can be attributed to a variety of factors, such as stronger relative growth in several sectors outside of real estate, ongoing interest rate headwinds, and specific REIT subcategory headwinds. As of December 31, 2025, the Fund’s net assets are as follows: REITs (71.2%), non-REIT real estate companies (25.0%), and cash and cash equivalents (3.8%). Also, the Fund currently has investments in 13 REIT categories. Heading into 2026, the Firm is optimistic about the prospects for the stock market and the Baron Real Estate Income Fund. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Baron Real Estate Income Fund highlighted Blackstone Mortgage Trust, Inc. (NYSE:BXMT). Blackstone Mortgage Trust, Inc. (NYSE:BXMT) is a real estate investment trust that focuses on mortgage loans. On April 2, 2026, Blackstone Mortgage Trust, Inc. (NYSE:BXMT) closed at $18.68 per share. One-month return of Blackstone Mortgage Trust, Inc. (NYSE:BXMT) was -2.71%, and its shares gained 1.80% over the past 52 weeks. Blackstone Mortgage Trust, Inc. (NYSE:BXMT) has a market capitalization of $3.15 billion.
Baron Real Estate Income Fund stated the following regarding Blackstone Mortgage Trust, Inc. (NYSE:BXMT) in its fourth quarter 2025 investor letter:
“We have maintained the Fund’s holding inBlackstone Mortgage Trust, Inc. (NYSE:BXMT), a commercial mortgage REIT that is focused on real estate credit investments. We believe the company benefits from several favorable attributes including its sponsorship by Blackstone Inc., the largest owner of commercial real estate globally, the company’s global platform which provides access to a geographically diversified pipeline of real estate credit investment opportunities, and the company’s strong and liquid balance sheet. With its close to 10% dividend yield, discounted valuation (less than 1 times book value), and improving business prospects, we believe Blackstone Mortgage Trust is a compelling investment for the Fund.”
Blackstone Mortgage Trust, Inc. (NYSE:BXMT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 19 hedge fund portfolios held Blackstone Mortgage Trust, Inc. (NYSE:BXMT) at the end of the fourth quarter, up from 18 in the previous quarter. While we acknowledge the risk and potential of Blackstone Mortgage Trust, Inc. (NYSE:BXMT) 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 Blackstone Mortgage Trust, Inc. (NYSE:BXMT) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In addition, please check out our hedge fund investor letters Q4 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.
