Baron Funds, an asset management company, released its “Baron Real Estate Income Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Real Estate Income Fund (the “Fund”) declined 18.43% (Institutional Shares) in the second quarter of 2022, modestly underperforming its primary benchmark, the MSCI US REIT Index (the “REIT Index”), which declined 17.16%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.
In its Q2 2022 investor letter, Baron Real Estate Income Fund mentioned Equinix, Inc. (NASDAQ:EQIX) and explained its insights for the company. Founded in 1998, Equinix, Inc. (NASDAQ:EQIX) is a Redwood City, California-based real estate investment trust company with a $56.8 billion market capitalization. Equinix, Inc. (NASDAQ:EQIX) delivered a -26.14% return since the beginning of the year, while its 12-month returns are down by -28.40%. The stock closed at $624.75 per share on September 16, 2022.
Here is what Baron Real Estate Income Fund has to say about Equinix, Inc. (NASDAQ:EQIX) in its Q2 2022 investor letter:
“Equinix, Inc. is a network dense global data operator of over 240 data centers in 69 metros and 30 countries. Its customers place high value on the ecosystem of customers that Equinix has curated within its data centers over many years so that they are able to interconnect within the data center facility instead of having data travel through the public internet (latency sensitive applications as well as data security considerations). Customers value the global network with 90% of customers in multiple metropolitan areas and 75% in multiple geographic regions.
Equinix has a diverse but valuable customer base with no single customer greater than 2.6% of recurring monthly revenues. COVID-19 has accelerated digital transformation priorities for many organizations, and we believe that Equinix will be poised to benefit from: i) organic growth through new bookings and pricing power (the majority of incremental bookings are from existing customers); ii) growth of high margin cross-connect revenue (approximately 20% of total); and iii) continued geographic expansion through development and select M&A. We believe the combination of these factors will allow the company to grow annual cash flow in the high singledigit range.”
Our calculations show that Equinix, Inc. (NASDAQ:EQIX) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Equinix, Inc. (NASDAQ:EQIX) was in 38 hedge fund portfolios at the end of the second quarter of 2022, compared to 40 funds in the previous quarter. Equinix, Inc. (NASDAQ:EQIX) delivered a -1.27% return in the past 3 months.
In August 2021, we also shared another hedge fund’s views on Equinix, Inc. (NASDAQ:EQIX) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.
Disclosure: None. This article is originally published at Insider Monkey.