Baron Funds, an investment management company, released its “Baron Real Estate Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund rose 6.17% (Institutional Shares) compared to a 4.90% return for the MSCI US REIT Index (the “REIT Index”) and an 8.71% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). For 2022, the fund declined 28.44% compared to a 23.84% decline for the MSCI Real Estate Index and a 25.37% decline for the REIT Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Funds highlighted stocks like Trex Company, Inc. (NYSE:TREX) in the Q4 2022 investor letter. Headquartered in Winchester, Virginia, Trex Company, Inc. (NYSE:TREX) is a decking, railing, and outdoor living products and accessories manufacturer. On January 31, 2023, Trex Company, Inc. (NYSE:TREX) stock closed at $52.72 per share. One-month return of Trex Company, Inc. (NYSE:TREX) was 15.74%, and its shares lost 44.99% of their value over the last 52 weeks. Trex Company, Inc. (NYSE:TREX) has a market capitalization of $5.785 billion.
Baron Funds made the following comment about Trex Company, Inc. (NYSE:TREX) in its Q4 2022 investor letter:
“The shares of two leading residential-related building products companies declined in the most recent quarter in part due to concerns about the housing-related slowdown and corresponding expected slowdown in their growth:
- Trex Company, Inc. (NYSE:TREX): the #1 manufacturer of wood-alternative outdoor decking and railing in the U.S by market share.
- Pool Corporation: the world’s largest distributor of swimming pool supplies, equipment, and related leisure products and is also one of the top three distributors of irrigation and landscape suppliers in the U.S.
We have been buying shares of both Trex and Pool at prices that we believe are attractive relative to their long-term growth opportunities.”
Photo by Omar Tursić on Unsplash
Trex Company, Inc. (NYSE:TREX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Trex Company, Inc. (NYSE:TREX)at the end of the third quarter, which was 36 in the previous quarter.
We discussed Trex Company, Inc. (NYSE:TREX) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.
