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 AvalonBay Communities, Inc. (NYSE:AVB) and explained its insights for the company. Founded in 1978, AvalonBay Communities, Inc. (NYSE:AVB) is a Hopewell, Virginia-based real estate investment trust company with a $28.6 billion market capitalization. AvalonBay Communities, Inc. (NYSE:AVB) delivered a -18.81% return since the beginning of the year, while its 12-month returns are down by -8.75%. The stock closed at $205.08 per share on September 14, 2022.
Here is what Baron Real Estate Fund has to say about AvalonBay Communities, Inc. (NYSE:AVB) in its Q2 2022 investor letter:
“We recently re-initiated a position in AvalonBay Communities, Inc. The company is a REIT that owns and operates a $43 billion portfolio of high quality apartment assets, located primarily in the east and west coasts of the U.S. We believe its concentration in high-barrier-to-entry coastal markets and its mix of urban and suburban properties should lead to strong cash flow growth over time. AvalonBay’s investment grade rating provides it with a cost of debt advantage compared to private developers. Management has proven to be a capable acquirer and developer of apartment assets. We believe AvalonBay’s shares are trading at an attractive 25% discount to its private market value.”
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Our calculations show that AvalonBay Communities, Inc. (NYSE:AVB) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. AvalonBay Communities, Inc. (NYSE:AVB) was in 30 hedge fund portfolios at the end of the second quarter of 2022, compared to 29 funds in the previous quarter. AvalonBay Communities, Inc. (NYSE:AVB) delivered a 9.33% return in the past 3 months.
In July 2022, we also shared another hedge fund’s views on AvalonBay Communities, Inc. (NYSE:AVB) in 10 Dividend Paying REIT Stocks To Buy Now. 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.
