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 stocks such as Iron Mountain Incorporated (NYSE:IRM). Iron Mountain Incorporated (NYSE:IRM) is a REIT that provides storage and information management solutions. On April 1, 2026, Iron Mountain Incorporated (NYSE:IRM) closed at $100.95 per share. One-month return of Iron Mountain Incorporated (NYSE:IRM) was -5.92%, and its shares gained 21.48% over the past 52 weeks. Iron Mountain Incorporated (NYSE:IRM) has a market capitalization of $30.03 billion.
Baron Real Estate Income Fund stated the following regarding Iron Mountain Incorporated (NYSE:IRM) in its fourth quarter 2025 investor letter:
“Shares of Iron Mountain Incorporated (NYSE:IRM), a company that offers records storage management along with an evolving fast-growing data center segment, detracted from performance during the quarter after the company posted a disappointing quarter of new bookings within its higher growth data center business. In addition, a short report presented at an investor conference questioned the company’s accounting adjustments and overall leverage levels added an overhang for the shares. While we disagree with the short report and believe the company has compelling long-term growth prospects, we harvested losses, exited our position, and reallocated capital to higher conviction ideas. We may revisit the investment later.”
Iron Mountain Incorporated (NYSE:IRM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 37 hedge fund portfolios held Iron Mountain Incorporated (NYSE:IRM) at the end of the fourth quarter, the same as in the previous quarter. While we acknowledge the risk and potential of Iron Mountain Incorporated (NYSE:IRM) 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 Iron Mountain Incorporated (NYSE:IRM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Iron Mountain Incorporated (NYSE:IRM) and shared a list of best AI data center stocks to buy. 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.
