Is Fortune Brands Home & Security (FBHS) an Attractive Investment Avenue?

Baron Funds, an investment management company, released its “Baron Real Estate Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 4.86% (Institutional Shares) compared to a 4.99% decline for its primary benchmark, the MSCI USA IMI Extended Real Estate Index. At the same time, the fund outperformed the MSCI US REIT Index, which fell 10.28% in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like Fortune Brands Home & Security, Inc. (NYSE:FBHS) in the Q3 2022 investor letter. Headquartered in Deerfield, Illinois, Fortune Brands Home & Security, Inc. (NYSE:FBHS) is a home and security products provider. On November 21, 2022, Fortune Brands Home & Security, Inc. (NYSE:FBHS) stock closed at $63.98 per share. One-month return of Fortune Brands Home & Security, Inc. (NYSE:FBHS) was 8.75% and its shares lost 39.63% of their value over the last 52 weeks. Fortune Brands Home & Security, Inc. (NYSE:FBHS) has a market capitalization of $8.205 billion.

Baron Funds made the following comment about Fortune Brands Home & Security, Inc. (NYSE:FBHS) in its Q3 2022 investor letter:

Fortune Brands Home & Security, Inc. (NYSE:FBHS) is a leading manufacturer of home security products, which include kitchen and bath cabinetry, plumbing and accessories, entry door systems, and security products. The company has several competitive advantages, including recognizable brands, a focus on innovation, strong distribution relationships, and a proven and highly capable management team. It is valued at only 8 times 2023 estimated cash flow versus a historical valuation range of 9 to 14 times cash flow.”

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Fortune Brands Home & Security, Inc. (NYSE:FBHS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Fortune Brands Home & Security, Inc. (NYSE:FBHS) at the end of the third quarter which was 33 in the previous quarter.

We discussed Fortune Brands Home & Security, Inc. (NYSE:FBHS) in another article and shared the list of undervalued stocks to buy according to Paul Tudor Jones. In addition, please check out our hedge fund investor letters Q3 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.