Baron Fund’s Sees Bright Future in Sun Communities (SUI)

Baron Funds, an asset management company, released its “Baron Real Estate Income Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Real Estate Income Fund (the “Fund”) declined 18.43% (Institutional Shares) in the second quarter of 2022, modestly underperforming its primary benchmark, the MSCI US REIT Index (the “REIT Index”), which declined 17.16%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Real Estate Income Fund mentioned Sun Communities, Inc. (NYSE:SUI) and explained its insights for the company. Founded in 1975, Sun Communities, Inc. (NYSE:SUI) is a Southfield, Michigan-based real estate investment trust company with a $19.1 billion market capitalization. Sun Communities, Inc. (NYSE:SUI) delivered a -27.40% return since the beginning of the year, while its 12-month returns are down by -21.46%. The stock closed at $152.43 per share on September 16, 2022.

Here is what Baron Real Estate Income Fund has to say about Sun Communities, Inc. (NYSE:SUI) in its Q2 2022 investor letter:

“Sun Communities is part of a niche real estate category that we expect to continue to benefit from favorable demand and supply dynamics. The company is the beneficiary of strong demand from budget-conscious home buyers such as retirees and millennials, and negligible new inventory due to high development barriers. Demand for affordable outdoor vacations (recreational vehicles) also remains strong. Sun Communities has strong long-term cash flow growth prospects and low capital expenditure needs. If the macroeconomic environment worsens, we expect business results to be resilient due to each company’s focus on affordable housing and affordable outdoor vacations.”

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Our calculations show that Sun Communities, Inc. (NYSE:SUI) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Sun Communities, Inc. (NYSE:SUI) was in 29 hedge fund portfolios at the end of the second quarter of 2022, compared to 36 funds in the previous quarter. Sun Communities, Inc. (NYSE:SUI) delivered a -0.55% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on Sun Communities, Inc. (NYSE:SUI) 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.