Should You Invest in Invitation Homes (INVH)?

Baron Funds, an investment management company, released its “Baron Real Estate Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 4.86% (Institutional Shares) compared to a 4.99% decline for its primary benchmark, the MSCI USA IMI Extended Real Estate Index. At the same time, the fund outperformed the MSCI US REIT Index, which fell 10.28% in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like Invitation Homes Inc. (NYSE:INVH) in the Q3 2022 investor letter. Invitation Homes Inc. (NYSE:INVH) is a single family home leasing company. On November 18, 2022, Invitation Homes Inc. (NYSE:INVH) stock closed at $31.27 per share. One-month return of Invitation Homes Inc. (NYSE:INVH) was -6.90% and its shares lost 23.26% of their value over the last 52 weeks. Invitation Homes Inc. (NYSE:INVH) has a market capitalization of $19.198 billion.

Baron Funds made the following comment about Invitation Homes Inc. (NYSE:INVH) in its Q3 2022 investor letter:

Invitation Homes Inc. (NYSE:INVH) 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 basis of 5.2% versus private market transactions in the 4% capitalization range. The public market implied valuation of its owned homes is only $360,000 per home versus acquisition costs of approximately $440,000 per home.”

Photo by Breno Assis on Unsplash

Invitation Homes Inc. (NYSE:INVH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held Invitation Homes Inc. (NYSE:INVH) at the end of the third quarter, which was 27 in the previous quarter.

We discussed Invitation Homes Inc. (NYSE:INVH) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q3 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.