Baron Capital, an investment management company, released its Q4 2025 letter for its “Baron Real Estate Fund”. A copy of the letter is available to download here. Baron Real Estate Fund was recognized as the Best Real Estate Fund Over Three Years at the 2026 LSEG Lipper Funds Awards, reflecting the three-year performance ending December 31, 2025. The Fund declined 5.39% (Institutional Shares) in Q1, underperforming the MSCI USA IMI Extended Real Estate Index (−0.96%) and the MSCI US REIT Index (+4.52%). Despite the Q1 decline, the long-term performance remains strong. The letter covers current thoughts, portfolio composition, key themes, top contributors and detractors, recent activity, and outlook for real estate and the Fund. The Fund has a positive outlook on the broader equity market and public real estate, and maintains a constructive outlook with compelling reasons to stay the course. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, Baron Real Estate Fund Strategy highlighted Wynn Resorts, Limited (NASDAQ:WYNN). Wynn Resorts, Limited (NASDAQ:WYNN) is a leading hospitality and casino company that designs, develops, and operates integrated resorts. On June 12, 2026, Wynn Resorts, Limited (NASDAQ:WYNN) closed at $107.27 per share. One-month return of Wynn Resorts, Limited (NASDAQ:WYNN) was 12.31%, and its shares gained 21.07% over the past 52 weeks. Wynn Resorts, Limited (NASDAQ:WYNN) has a market capitalization of $11.13 billion.
Baron Real Estate Fund stated the following regarding Wynn Resorts, Limited (NASDAQ:WYNN) in its Q1 2026 investor letter:
“We believe a broad set of best-in-class real estate companies – both REITs and non-REITs – now trade at attractive discounts relative to historical levels and private market values, offering compelling return potential in the years ahead.
Wynn Resorts, Limited (NASDAQ:WYNN), Limited is an example of non-REIT real estate companies that are cheap. It is A premier luxury global owner and operator of integrated resorts (hotels and casinos), valued at 8 times 2027 estimated cash flow compared with its long-term average of 13 to 15 times.
Wynn Resorts, Limited ‣ A leading hotel and gaming company, currently valued at just 8.2 times 2027 estimated cash flow compared with its historical range of 13 to 15 times. ‣ The company could become one of the most compelling travel-related growth stories with the opening of its UAE resort in 2027, which could be worth $50/share versus its current market value of only $97 per share.”
Wynn Resorts, Limited (NASDAQ:WYNN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 44 hedge fund portfolios held Wynn Resorts, Limited (NASDAQ:WYNN) at the end of the first quarter, compared to 62 in the previous quarter. While we acknowledge the risk and potential of Wynn Resorts, Limited (NASDAQ:WYNN) 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 WYNN RESORTS, LIMITED (NASDAQ:WYNN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Wynn Resorts, Limited (NASDAQ:WYNN) and shared the list of best sin stocks to buy. In addition, please check out our hedge fund investor letters Q1 2026 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.
