Baron Funds, an investment management company, released its “Baron Real Estate Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 4.86% (Institutional Shares) compared to a 4.99% decline for its primary benchmark, the MSCI USA IMI Extended Real Estate Index. At the same time, the fund outperformed the MSCI US REIT Index, which fell 10.28% in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Funds highlighted stocks like NETSTREIT Corp. (NYSE:NTST) in the Q3 2022 investor letter. Based in Dallas, Texas, NETSTREIT Corp. (NYSE:NTST) is a Real Estate Investment Trust that creates net lease retail portfolios. On November 21, 2022, NETSTREIT Corp. (NYSE:NTST) stock closed at $19.19 per share. One-month return of NETSTREIT Corp. (NYSE:NTST) was 5.15%, and its shares lost 14.86% of their value over the last 52 weeks. NETSTREIT Corp. (NYSE:NTST) has a market capitalization of $1.133 billion.
Baron Funds made the following comment about NETSTREIT Corp. (NYSE:NTST) in its Q3 2022 investor letter:
“We recently initiated a position in NETSTREIT Corp. (NYSE:NTST), a triple net REIT that acquires, owns, and manages a diversified portfolio of single-tenant, net lease retail commercial real estate with high credit quality tenants. We have a favorable view of management and its plan to continue to grow the company rapidly through accretive acquisitions.
Led by CEO Mark Manheimer, management has assembled a high-quality real estate portfolio with more than 80% of the portfolio consisting of investment grade tenants or tenants with an investment grade profile. During the COVID-19 lockdown, the company preserved an excellent rent collection rate and maintained 100% occupancy through all of 2020 and 2021.
The company’s strong balance sheet, with leverage of only 3.7 times cash flow (adjusted for a recent equity capital raise) and ample liquidity, should allow management to pursue accretive acquisitions, which would likely lead to strong earnings growth in the next few years.”
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NETSTREIT Corp. (NYSE:NTST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 12 hedge fund portfolios held NETSTREIT Corp. (NYSE:NTST) at the end of the third quarter which was 13 in the previous quarter.
We discussed NETSTREIT Corp. (NYSE:NTST) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
