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 Camden Property Trust (NYSE:CPT) and explained its insights for the company. Founded in 1981, Camden Property Trust (NYSE:CPT) is a Houston, Texas-based real estate investment trust company with a $13.7 billion market capitalization. Camden Property Trust (NYSE:CPT) delivered a -27.80% return since the beginning of the year, while its 12-month returns are up by -13.04%. The stock closed at $129.00 per share on September 16, 2022.
Here is what Baron Real Estate Income Fund has to say about Camden Property Trust (NYSE:CPT) in its Q2 2022 investor letter:
“The Fund’s multi-family REIT Camden Property Trust (NYSE:CPT) has been generating strong occupancy, rent, and cash flow growth. We expect in-place rents, which remain below market rents, to be a source of ongoing strong cash flow growth in the near term. We also expect rental apartments to continue to benefit from homeownership affordability challenges. Currently, the Fund’s investments in multi-family REITs provide partial inflation protection to offset rising costs due to leases that can be reset at higher rents, in some cases, annually. Valuations are attractive at 5% capitalization rates and remain at discounts to recent private market multi-family transactions which have been valued at high 3% to low 4% capitalization rates.”
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Our calculations show that Camden Property Trust (NYSE:CPT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Camden Property Trust (NYSE:CPT) was in 28 hedge fund portfolios at the end of the second quarter of 2022, compared to 30 funds in the previous quarter. Camden Property Trust (NYSE:CPT) delivered a 0.33% return in the past 3 months.
In May 2022, we published an article that includes Camden Property Trust (NYSE:CPT) in 5 Best Real Estate Stocks to Buy in 2022 According to Eduardo Abush’s Waterfront Capital Partners. 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.
