Baron Funds, an investment management company, released its “Baron Real Estate Income Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund rose 2.10% (Institutional Shares) compared to a 4.90% return for the MSCI US REIT Index (the “REIT Index”). For 2022, the fund declined 27.47% underperforming the benchmark which declined 25.37%. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Real Estate Income Fund highlighted stocks like Simon Property Group, Inc. (NYSE:SPG) in the fourth quarter 2022 investor letter. Simon Property Group, Inc. (NYSE:SPG) is a real estate investment trust that operates malls. On March 13, 2023, Simon Property Group, Inc. (NYSE:SPG) stock closed at $111.42 per share. One-month return of Simon Property Group, Inc. (NYSE:SPG) was -11.16%, and its shares lost 13.55% of their value over the last 52 weeks. Simon Property Group, Inc. (NYSE:SPG) has a market capitalization of $41.698 billion.
Baron Real Estate Income Fund made the following comment about Simon Property Group, Inc. (NYSE:SPG) in its Q4 2022 investor letter:
“Simon Property Group, Inc. (NYSE:SPG) is the world’s largest mall operator. Led by CEO David Simon, the company has assembled a well-located portfolio of retail malls, outlets, and community centers. Management has a long track record of solid capital allocation decisions.
Simon’s dividend yield of 6% and valuation of only 10.6 times earnings (AFFO) versus a long-term average of 15 times earnings is, in our opinion, compelling.
Though we are mindful of the headwinds to certain retail real estate–excess supply of retail real estate, e-commerce headwinds, large capital requirements to repurpose retail real estate to higher and better alternative uses–we believe Simon Property is well positioned given the strong location and high quality of its real estate portfolio. We are managing the Fund’s investment in the company with possible retail headwinds in mind.”
Photo by Heidi Fin on Unsplash
Simon Property Group, Inc. (NYSE:SPG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Simon Property Group, Inc. (NYSE:SPG) at the end of the fourth quarter which was 35 in the previous quarter.
We discussed Simon Property Group, Inc. (NYSE:SPG) in another article and shared the list of most profitable real estate stocks. In addition, please check out our hedge fund investor letters Q4 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.
