Is it Still Great to Invest in Boston Properties (BXP)?

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Long-Short Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. The Diamond Hill Long-Short Fund’s returns were just about flat—slightly positive— in Q1. After a strong rebound in 2021, the fund expects the global GDP growth to moderate in 2022. Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Diamond Hill Long-Short Fund mentioned Boston Properties, Inc. (NYSE:BXP) and explained its insights for the company. Founded in 1970, Boston Properties, Inc. (NYSE:BXP) is a Boston, Massachusetts-based real estate investment trust company with a $13.4 billion market capitalization. Boston Properties, Inc. (NYSE:BXP) delivered a -25.71% return since the beginning of the year, while its 12-month returns are down by -26.32%. The stock closed at $85.57 per share on July 14, 2022.

Here is what Diamond Hill Long-Short Fund has to say about Boston Properties, Inc. (NYSE:BXP) in its Q1 2022 investor letter:

“Commercial real estate investment trust (REIT) Boston Properties (NYSE:BXP) has a solid balance sheet and good assets. However, as the largest public office REIT, it operates in a challenging space due to high capital expenditure needs, the ease of adding new supply and tenant leverage. BXP is also concentrated in large coastal markets that have high taxes and burdensome regulations, and subsequently have seen population outflows. We believe the combination of a tough business and a marginally worse environment given the rising acceptance of at-home work will be challenging over the long term for BXP.”

Photo by Blake Wheeler on Unsplash

Our calculations show that Boston Properties, Inc. (NYSE:BXP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Boston Properties, Inc. (NYSE:BXP) was in 20 hedge fund portfolios at the end of the first quarter of 2022, compared to 22 funds in the previous quarter. Boston Properties, Inc. (NYSE:BXP) delivered a -31.3% return in the past 3 months.

In May 2022, we published an article that includes Boston Properties, Inc. (NYSE:BXP) in 10 Return-to-Office Stocks to Buy in 2022. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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