Here’s Why Baron Asset Fund Exited Alexandria Real Estate Equities (ARE)

Baron Funds, an investment management company, released its “Baron Asset Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. U.S. equities continued their upward trend in the second consecutive quarter. The rise was led by the outsized performance of a few large technology companies, partly driven by the hype surrounding their potential benefits from the widespread adoption of artificial intelligence (AI). Against this backdrop, the Baron Asset Fund increased by 3.63% (Institutional Shares) trailing Russell Midcap Growth Index’s 6.23% returns. The underperformance of certain stocks affected the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Asset Fund highlighted stocks like Alexandria Real Estate Equities, Inc. (NYSE:ARE) in the second quarter 2023 investor letter. Alexandria Real Estate Equities, Inc. (NYSE:ARE) is a life science REIT. On July 27, 2023, Alexandria Real Estate Equities, Inc. (NYSE:ARE) stock closed at $125.80 per share. One-month return of Alexandria Real Estate Equities, Inc. (NYSE:ARE) was 10.85%, and its shares lost 24.12% of their value over the last 52 weeks. Alexandria Real Estate Equities, Inc. (NYSE:ARE) has a market capitalization of $21.767 billion.

Baron Asset Fund made the following comment about Alexandria Real Estate Equities, Inc. (NYSE:ARE) in its second quarter 2023 investor letter:

“We exited our position in Alexandria Real Estate Equities, Inc. (NYSE:ARE), a REIT focused on developing office and laboratory space for the life sciences industry, given concerns about slowing real estate demand among its primary tenant base. We took some profits and managed the position size of long-term holding Gartner, Inc.”

science, laboratory, bioscience

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Alexandria Real Estate Equities, Inc. (NYSE:ARE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Alexandria Real Estate Equities, Inc. (NYSE:ARE) at the end of first quarter which was 29 in the previous quarter.

We discussed Alexandria Real Estate Equities, Inc. (NYSE:ARE) in another article and shared the list of best commercial real estate stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2023 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.