Baron Funds, an investment management firm, released its “Baron Real Estate Income Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. In the first nine months of 2023, the Fund has increased 1.20%, outperforming the REIT Index, which declined 2.89%. As of September 30, 2023, the Fund has maintained its top 3% ranking among all real estate funds for its 5-year performance period. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q2 2023 investor letter, Baron Real Estate Income Fund mentioned American Tower Corporation (NYSE:AMT) and explained its insights for the company. Founded in 1995, American Tower Corporation (NYSE:AMT) is a Boston, Massachusetts-based real estate investment trust company with a $74.3 billion market capitalization. American Tower Corporation (NYSE:AMT) delivered a -24.75% return since the beginning of the year, while its 12-month returns are down by -15.20%. The stock closed at $159.43 per share on October 19, 2023.
Here is what Baron Real Estate Income Fund has to say about American Tower Corporation (NYSE:AMT) in its Q2 2023 investor letter:
“Early in 2023, we reduced the majority of our position in American Tower Corporation (NYSE:AMT), a global operator of over 200,000 wireless towers, and exited our small position in the third quarter. While we are positive on the long-term secular trends underpinning American Tower’s business, we concluded in late 2022 and early 2023 that growth expectations were too high given forthcoming headwinds from significantly higher financing costs (20%-plus exposure to floating rate debt), upcoming debt maturities, continued payment shortfalls from a key tenant in India, foreign exchange headwinds, and a possible reduction in mobile carrier capital expenditures.
As shares have become more attractively valued, growth headwinds are better understood, and with a potential monetization event of its India business, we may look to re-acquire shares.”
A professional couple smiling while signing a real estate contract in a modern office building. Editorial photo for a financial news article. 8k. –ar 16:9
Our calculations show that American Tower Corporation (NYSE:AMT) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. American Tower Corporation (NYSE:AMT) was in 60 hedge fund portfolios at the end of the second quarter of 2023, compared to 65 funds in the previous quarter. American Tower Corporation (NYSE:AMT) delivered a -13.66% return in the past 3 months.
We also discussed American Tower Corporation (NYSE:AMT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
Suggested Articles:
- 20 Most Productive States in the US
- Top 100 Places Where the Rich People Own Real Estate
- 30 Friendliest Countries in the World
Disclosure: None. This article is originally published at Insider Monkey.
