Baron Funds, an investment management company, released its “Baron Real Estate Income Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund rose 2.10% (Institutional Shares) compared to a 4.90% return for the MSCI US REIT Index (the “REIT Index”). For 2022, the fund declined 27.47% underperforming the benchmark which declined 25.37%. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Real Estate Income Fund highlighted stocks like EastGroup Properties, Inc. (NYSE:EGP) in the fourth quarter 2022 investor letter. EastGroup Properties, Inc. (NYSE:EGP) is an equity real estate investment trust focused on industrial properties. On March 13, 2023, EastGroup Properties, Inc. (NYSE:EGP) stock closed at $159.69 per share. One-month return of EastGroup Properties, Inc. (NYSE:EGP) was -5.64%, and its shares lost 16.16% of their value over the last 52 weeks. EastGroup Properties, Inc. (NYSE:EGP) has a market capitalization of $7.069 billion.
Baron Real Estate Income Fund made the following comment about EastGroup Properties, Inc. (NYSE:EGP) in its Q4 2022 investor letter:
“Following a sharp correction in its share price over the course of 2022 and discussions with management, we initiated a position in EastGroup Properties, Inc. (NYSE:EGP), a REIT that is a leading developer, acquirer, and operator of industrial properties in major Sunbelt markets throughout the U.S.
The company has assembled a high-quality real estate portfolio and management has a strong track record of delivering consistent gains in occupancy and rent growth and maintaining strong expense growth. Looking forward, we believe in-place rents on leases signed remain well below current market rents thereby providing visibility into strong embedded growth potential. Further, management maintains a conservative balance sheet.
We believe the shares are attractively valued and the company could be targeted as a takeover candidate should its valuation remain depressed.”
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EastGroup Properties, Inc. (NYSE:EGP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held EastGroup Properties, Inc. (NYSE:EGP) at the end of the fourth quarter which was 18 in the previous quarter.
We discussed EastGroup Properties, Inc. (NYSE:EGP) in another articles and shared Carillon Eagle Small Cap Growth Fund’s 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.
