Here’s Why Baron Funds Disposed its Vornado Realty Trust (VNO) Stake

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 Vornado Realty Trust (NYSE:VNO) and explained its insights for the company. Founded in 1982, Vornado Realty Trust (NYSE:VNO) is a New York, New York-based real estate investment trust company with a $5.4 billion market capitalization. Vornado Realty Trust (NYSE:VNO) delivered a -37.20% return since the beginning of the year, while its 12-month returns are down

Here is what Baron Real Estate Income Fund has to say about Vornado Realty Trust (NYSE:VNO) in its Q2 2022 investor letter:

“In the most recent quarter, we exited the Fund’s investment in Vornado Realty Trust, a REIT that owns a high-quality portfolio of office and street retail assets concentrated in New York City. Though we have high regard for management and believe the shares are attractively valued, we remain wary of the operational headwinds for office real estate and believe there are superior long-term business prospects for other segments of real estate.”

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Our calculations show that Vornado Realty Trust (NYSE:VNO) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Vornado Realty Trust (NYSE:VNO) was in 23 hedge fund portfolios at the end of the second quarter of 2022, compared to 24 funds in the previous quarter. Vornado Realty Trust (NYSE:VNO) delivered a -7.56% return in the past 3 months.

In August 2021, we also shared another hedge fund’s views on Vornado Realty Trust (NYSE:VNO) 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.