Baron Funds, an asset management company, released its “Baron Real Estate Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Real Estate Fund (the “Fund”) declined 20.62% (Institutional Shares) in the second quarter of 2022, underperforming its primary benchmark, the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”), which declined 17.12%. The Fund underperformed the MSCI US REIT Index (the “REIT Index”), which declined 17.16%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
In its Q2 2022 investor letter, Baron Real Estate Fund mentioned Brookfield Asset Management Inc. (NYSE:BAM) and explained its insights for the company. Founded in 1997, Brookfield Asset Management Inc. (NYSE:BAM) is a Toronto, Canada-based investment management company with a $78.7 billion market capitalization. Brookfield Asset Management Inc. (NYSE:BAM) delivered a -17.64% return since the beginning of the year, while its 12-month returns are down by -10.46%. The stock closed at $49.73 per share on September 14, 2022.
Here is what Baron Real Estate Fund has to say about Brookfield Asset Management Inc. (NYSE:BAM) in its Q2 2022 investor letter:
“Brookfield Asset Management Inc. is a leading alternative asset manager that is one of the largest owners and operators of real estate and infrastructure assets in the world. At the company’s September 2021 investor day, the management team laid out a multi-year growth plan with expectations for its shares to increase from its recent price of only $45 to more than $150 over the next five years. Management has a track record of under promising and over delivering.
Brookfield is planning to spin off 25% of its asset management business by the end of 2022 at an $80 billion valuation. This compares to the company’s overall market capitalization of $73 billion. When accounting for Brookfield’s investments in other publicly listed companies, the public market is currently valuing Brookfield’s asset management business at only $26 billion versus the company’s $80 billion assessment of its value.”
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Our calculations show that Brookfield Asset Management Inc. (NYSE:BAM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Brookfield Asset Management Inc. (NYSE:BAM) was in 34 hedge fund portfolios at the end of the second quarter of 2022, compared to 35 funds in the previous quarter. Brookfield Asset Management Inc. (NYSE:BAM) delivered a 8.77% return in the past 3 months.
In August 2022, we also shared another hedge fund’s views on Brookfield Asset Management Inc. (NYSE:BAM) 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.
