Baron Funds Remain Optimistic about Jones Lang LaSalle (JLL)’s Long-Term Prospects

Baron Funds, an asset management company, released its “Baron Real Estate Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Real Estate Fund (the “Fund”) declined 20.62% (Institutional Shares) in the second quarter of 2022, underperforming its primary benchmark, the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”), which declined 17.12%. The Fund underperformed the MSCI US REIT Index (the “REIT Index”), which declined 17.16%. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In its Q2 2022 investor letter, Baron Real Estate Fund mentioned Jones Lang LaSalle Incorporated (NYSE:JLL) and explained its insights for the company. Founded in 1999, Jones Lang LaSalle Incorporated (NYSE:JLL) is a Chicago, Illinois-based global commercial real estate services company with a $7.9 billion market capitalization. Jones Lang LaSalle Incorporated (NYSE:JLL) delivered a -38.07% return since the beginning of the year, while its 12-month returns are down by -30.74%. The stock closed at $166.81 per share on September 14, 2022.

Here is what Baron Real Estate Fund has to say about Jones Lang LaSalle Incorporated (NYSE:JLL) in its Q2 2022 investor letter:

“Jones Lang LaSalle Incorporated is one of the leading commercial real estate services firms in the world. It is currently valued at a P/E multiple of only 9 times 2022 estimated earnings versus a long-term average multiple of approximately 15 times earnings. In a draconian case in which earnings fall short of consensus estimates by 35% (we think unlikely), the shares would still be valued at only 13.5 times earnings.

The shares of Jones Lang LaSalle Incorporated, the second largest commercial real estate services company in the world, declined in the second quarter in part due to concerns that its leasing and transaction businesses will be pressured as economic growth slows. At its recent price, we believe these concerns are largely priced into the company’s valuation and remain optimistic about the company’s long-term prospects.”

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Our calculations show that Jones Lang LaSalle Incorporated (NYSE:JLL) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Jones Lang LaSalle Incorporated (NYSE:JLL) was in 28 hedge fund portfolios at the end of the second quarter of 2022, compared to 35 funds in the previous quarter. Jones Lang LaSalle Incorporated (NYSE:JLL) delivered a 0.44% return in the past 3 months.

In August 2022, we also shared another hedge fund’s views on Jones Lang LaSalle Incorporated (NYSE:JLL) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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