Here’s What Will Boost Blackstone Mortgage Trust (BXMT)?

Baron Funds, an investment management company, released its “Baron Real Estate Income Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund decreased 0.23% (Institutional Shares) in the quarter compared to a 1.46% decline for the MSCI US REIT Index (the REIT Index). Since its inception on December 29, 2017, through June 30, 2025, the Fund achieved a cumulative return of 87.02%, more than double the 35.45% return of the REIT Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Real Estate Income Fund highlighted stocks such as Blackstone Mortgage Trust, Inc. (NYSE:BXMT). Blackstone Mortgage Trust, Inc. (NYSE:BXMT) is a real estate finance company. The one-month return of Blackstone Mortgage Trust, Inc. (NYSE:BXMT) was -5.22%, and its shares gained 10.47% of their value over the last 52 weeks. On August 8, 2025, Blackstone Mortgage Trust, Inc. (NYSE:BXMT) stock closed at $18.88 per share, with a market capitalization of $3.239 billion.

Baron Real Estate Income Fund stated the following regarding Blackstone Mortgage Trust, Inc. (NYSE:BXMT) in its second quarter 2025 investor letter:

“Following encouraging meetings with the management team of Blackstone Mortgage Trust, Inc. (NYSE:BXMT), we have continued to acquire shares in this commercial mortgage REIT that is focused on real estate credit investments in North America and Europe. 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 global pipeline of real estate credit, and the company’s strong and liquid balance sheet. We will elaborate on the Fund’s investment in Blackstone Mortgage Trust in future shareholder letters.”

Is Blackstone Mortgage Trust, Inc. (BXMT) the Most Undervalued REIT Stock to Invest In Now?

An iconic skyline with one of the company’s iconic REITs in the foreground.

Blackstone Mortgage Trust, Inc. (NYSE:BXMT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 24 hedge fund portfolios held Blackstone Mortgage Trust, Inc. (NYSE:BXMT) at the end of the first quarter, which was 21 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 another article, we covered Blackstone Mortgage Trust, Inc. (NYSE:BXMT) and shared the list of most undervalued REIT stocks to invest in. In addition, please check out our hedge fund investor letters Q2 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.