Is it a Good Choice to Invest in American Tower (AMT)?

Baron Funds, an asset management company, released its “Baron Real Estate Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Real Estate Fund (the “Fund”) declined 20.62% (Institutional Shares) in the second quarter of 2022, underperforming its primary benchmark, the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”), which declined 17.12%. The Fund underperformed the MSCI US REIT Index (the “REIT Index”), which declined 17.16%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In its Q2 2022 investor letter, Baron Real Estate Fund mentioned American Tower Corporation (NYSE:AMT) and explained its insights for the company. Founded in 1995, American Tower Corporation (NYSE:AMT) is a Boston, Massachusetts-based real estate investment trust company with a $114.0 billion market capitalization. American Tower Corporation (NYSE:AMT) delivered a -16.22% return since the beginning of the year, while its 12-month returns are down by -17.53%. The stock closed at $245.06 per share on September 15, 2022.

Here is what Baron Real Estate Fund has to say about American Tower Corporation (NYSE:AMT) in its Q2 2022 investor letter:

American Tower is a leading global tower company with 220,000 communication sites globally and over 40,000 in the U.S. We added to our position during the market dislocation and as it became increasingly clear that the company would put permanent equity financing in place at better-than-expected terms for its previously announced acquisition of CoreSite (thereby removing the “equity overhang”).

In addition, the company stepped back from a large potential deal in Europe, which would have required significant incremental funding, due to unfavorable contract terms and price. This decision further reinforced our confidence in management’s capital allocation discipline knowing that these were highly sought-after assets.”


Our calculations show that American Tower Corporation (NYSE:AMT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. American Tower Corporation (NYSE:AMT) was in 52 hedge fund portfolios at the end of the second quarter of 2022, compared to 50 funds in the previous quarter. American Tower Corporation (NYSE:AMT) delivered a 4.65% return in the past 3 months.

In August 2022, we also shared another hedge fund’s views on American Tower Corporation (NYSE:AMT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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