Is American Assets Trust (AAT) a Smart Long-term Buy?

Baron Discovery Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Discovery Fund returned 18.83% (institutional shares). This was 11.67% better than the Russell 2000 Growth Index, the Fund’s primary benchmark index. You should check out Baron Discovery Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Baron Discovery Fund highlighted a few stocks and American Assets Trust Inc. (NYSE:AAT) is one of them. American Assets Trust Inc. (NYSE:AAT) is a real estate investment trust company. Year-to-date, American Assets Trust Inc. (NYSE:AAT) stock lost 35.4% and on December 2nd it had a closing price of $29.67. Here is what Baron Discovery Fund said:

“American Assets Trust, Inc. (“AAT”), a U.S.-based real estate investment trust that owns an irreplaceable portfolio of office, retail, multi-family and hotel properties in the Western U.S., detracted from performance during the third quarter. Underperformance was driven by additional shutdowns and travel restrictions in Hawaii (which represents approximately 13% of the company’s cash flow). This led to lower rent collections from AAT’s Hawaiian retail tenants. Rent collections remained otherwise stable across property types and regions. We remain excited by AAT’s growth pipeline and the underlying real estate value of its assets, and we think the market will recognize this value as we get through the COVID-19 pandemic.”

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In Q2 2020, the number of bullish hedge fund positions on American Assets Trust Inc. (NYSE:AAT) stock increased by about 33% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in American Assets Trust’s growth potential. Our calculations showed that American Assets Trust Inc. (NYSE:AAT) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.