Is JBG SMITH Properties (JBGS) A Good Stock To Buy Now?

Baron Discovery Fund recently published its second-quarter commentary – a copy of which can be downloaded here. During the second quarter of 2021, the Baron Discovery Fund returned 6.07% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.55%, while the Russell 2000 Growth Index was up 3.92%. You should check out Baron Discovery Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q2 2021 Investor Letter, the fund highlighted a few stocks and JBG Smith Properties (NYSE:JBGS) is one of them. JBG Smith Properties (NYSE:JBGS) is a real estate investment trust company. In the last three months, JBG Smith Properties (NYSE:JBGS) stock lost 10%. Here is what the fund said:

“We initiated a new position during the second quarter in JBG SMITH Properties. JBG is a real estate investment trust that owns a high-quality portfolio of office, residential, and land assets concentrated in the Washington D.C. metro area. The company was formed in July 2017 via a combination of JBG Companies (a D.C. area private equity firm) and Vornado Realty Trust’s D.C. properties. JBG’s regional footprint is poised to benefit from rebounding job growth over the next several years, driven by a normalization of the D.C. metro economy following negative impacts from the COVID-19 pandemic. In addition, Amazon’s “HQ2” development currently underway is expected to drive outsized job growth over the next decade in National Landing, Virginia, which should benefit the vast majority of JBG’s portfolio. We think JBG has the potential to grow cash flow by approximately 30% over the next several years and, in time, can double the size of the company by monetizing a sizeable development pipeline and owned land bank. We have great respect for the management team, led by CEO Matt Kelly, whose interests are aligned with shareholders. We believe valuation is attractive, with the stock trading at a significant discount to its private market value and well below pre-COVID levels.”

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In July, we published an article revealing that JBG Smith Properties (NYSE:JBGS) was one of the 10 best dividend stocks to buy according to John Khoury’s Long Pond Capital.

In Q3 2020, the number of bullish hedge fund positions on JBG Smith Properties (NYSE:JBGS) stock decreased by about 32% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in JBGS’s growth potential. Our calculations showed that JBG Smith Properties (NYSE:JBGS) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage.

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