Baron Funds, an investment management company, released its “Baron Real Estate Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund rose 7.07% (Institutional Shares) compared to a 2.39% return for the MSCI US REIT Index (the “REIT Index”) and a 4.73% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). The firm is optimistic about the prospects for the stock market, public real estate securities, and the fund. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Real Estate Fund highlighted stocks like Invitation Homes Inc. (NYSE:INVH) in the Q1 2023 investor letter. Invitation Homes Inc. (NYSE:INVH) is a home leasing company. On June 26, 2023, Invitation Homes Inc. (NYSE:INVH) stock closed at $33.60 per share. One-month return of Invitation Homes Inc. (NYSE:INVH) was 0.03%, and its shares lost 6.09% of their value over the last 52 weeks. Invitation Homes Inc. (NYSE:INVH) has a market capitalization of $20.646 billion.
Baron Real Estate Fund made the following comment about Invitation Homes Inc. (NYSE:INVH) in its first quarter 2023 investor letter:
“Residential-related REITs that provide partial inflation protection given the short duration of leases, relatively affordable shelter, and solid long-term growth prospects. Examples: Invitation Homes Inc. (NYSE:INVH)
Invitation Homes, Inc. is the largest institutional owner of single-family rental homes concentrated across high-growth markets and in-fill neighborhoods with access to good schools, transportation corridors, and robust employment opportunities. It is valued at an implied capitalization rate of 6.0% versus private market transactions in the 5% range. The public market implied valuation of its owned homes is only $320,000 per home versus acquisition costs of approximately $430,000 per home.”
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Invitation Homes Inc. (NYSE:INVH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Invitation Homes Inc. (NYSE:INVH) at the end of first quarter 2023 which was 17 in the previous quarter.
We discussed Invitation Homes Inc. (NYSE:INVH) in another article and shared the list of biggest real estate companies in USA. In addition, please check out our hedge fund investor letters Q1 2023 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.
