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 SiteOne Landscape Supply, Inc. (NYSE:SITE) and explained its insights for the company. Founded in 2001, SiteOne Landscape Supply, Inc. (NYSE:SITE) is a Roswell, Georgia-based landscape supplies distributor with a $5.0 billion market capitalization. SiteOne Landscape Supply, Inc. (NYSE:SITE) delivered a -53.33% return since the beginning of the year, while its 12-month returns are down by -43.46%. The stock closed at $113.07 per share on September 14, 2022.
Here is what Baron Real Estate Fund has to say about SiteOne Landscape Supply, Inc. (NYSE:SITE) in its Q2 2022 investor letter:
“In the first six months of 2022, the shares of SiteOne Landscape Supply, Inc. declined 51% from a peak of $242 to $119. Recently, we have been acquiring shares at what we believe is a compelling valuation. SiteOne is the largest and only national wholesale distributor of landscape supplies (outdoor lighting, fertilizers, grass seeds, turf care equipment, etc.) in the U.S. with an extensive network of over 600 branch locations across 45 states and 6 Canadian provinces. According to management, the company is more than five times the size of its next closest competitor. The company serves both residential and commercial landscape professionals.
We are bullish about the long-term prospects for SiteOne because we expect the company to benefit both from the eventual resumption of the recovery in the residential real estate market and from its ample opportunities to make acquisitions and consolidate a highly fragmented industry. The company generated approximately $3.5 billion in sales in 2021, representing approximately 15% of the $23 billion U.S. landscape supply market…” (Click here to see the full text)
Our calculations show that SiteOne Landscape Supply, Inc. (NYSE:SITE) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. SiteOne Landscape Supply, Inc. (NYSE:SITE) was in 17 hedge fund portfolios at the end of the second quarter of 2022, compared to 23 funds in the previous quarter. SiteOne Landscape Supply, Inc. (NYSE:SITE) delivered a -3.94% return in the past 3 months.
In August 2022, we also shared another hedge fund’s views on SiteOne Landscape Supply, Inc. (NYSE:SITE) 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.
