Time to Go Short on Simon Property Group (SPG)?

Parnassus Investments, an investment management firm that focuses on owning a concentrated portfolio of U.S. large cap stocks, released its Parnassus Value Equity Fund second-quarter 2025 investor letter. The full letter is available for download here. For the second quarter of 2025, the fund reported a net return of 7.24%, outperforming its benchmark, the Russell 1000 Value Index, which returned 3.79% for the same period. The fund’s top 5 holdings are also listed in the letter, showing the firm’s main investment positions heading into 2025.

One of the companies mentioned in the letter is Simon Property Group Inc (NYSE:SPG). Simon Property Group Inc (NYSE:SPG)  is a self-administered and self-managed real estate investment trust. Over the past month, Simon Property Group Inc (NYSE:SPG) rose by 4.62%, and its shares gained 10.53% of their value over the last 12 months. On August 12, 2025, Simon Property Group Inc (NYSE:SPG) shares closed at $169.22, with a market capitalization of $63.8 billion.

Here is what they have to say about Simon Property Group Inc (NYSE:SPG) in their investor letter:

Simon Property Group Inc (NYSE:SPG) has reached the upper end of its valuation range. We believe the valuation does not reflect the uncertainty around consumer spending and the potential impact of tariffs on retail tenants.”

An ambitious looking property developer discussing plans for a new development with an enthusiastic client.

Simon Property Group Inc (NYSE:SPG) is not included in our list of the 30 most popular stocks among hedge funds. According to our data, 47 hedge fund portfolios held positions in Simon Property Group Inc (NYSE:SPG) at the end of the first quarter of 2025, up from 40 in the previous quarter. SPG was able to beat earnings expectations as it reported an EPS of $3.05, beating expectations of $3.04. While we acknowledge the risk and potential of SPG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SPG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Simon Property Group Inc (NYSE:SPG) and Goldman Sach’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 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.