Do You Believe in the Long-Term Growth Prospects of Douglas Emmett (DEI)?

Baron Funds, an investment management company, released its “Baron Partners Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. Despite the market volatility, the fund performed well and returned 23.41% in the first quarter, which exceeds the Russell Midcap Growth Index’s 9.14% return and the S&P 500 Index’s 7.50% return in the same period. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Baron Partners Fund highlighted stocks like Douglas Emmett, Inc. (NYSE:DEI) in the first quarter 2023 investor letter. Douglas Emmett, Inc. (NYSE:DEI) is a real estate investment trust. On May 22, 2023, Douglas Emmett, Inc. (NYSE:DEI) stock closed at $11.72 per share. One-month return of Douglas Emmett, Inc. (NYSE:DEI) was -5.02%, and its shares lost 57.20% of their value over the last 52 weeks. Douglas Emmett, Inc. (NYSE:DEI) has a market capitalization of $2.371 billion.

Baron Partners Fund made the following comment about Douglas Emmett, Inc. (NYSE:DEI) in its Q1 2023 investor letter:

“Douglas Emmett, Inc. (NYSE:DEI) is a REIT that owns and manages office buildings and apartment communities concentrated in West Los Angeles, the San Fernando Valley, and Honolulu. Shares declined due to weak fourth quarter results and full-year guidance. Business fundamentals are challenged, driven by slower leasing activity, elevated vacancies, and diminished pricing power across the company’s sub-markets. Higher interest expense is also negatively impacting earnings. We remain optimistic about the company’s long-term business prospects, owing to its irreplaceable portfolio in supply constrained markets and manageable debt levels, and we view the current valuation as highly discounted.”

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Douglas Emmett, Inc. (NYSE:DEI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Douglas Emmett, Inc. (NYSE:DEI) at the end of the fourth quarter which was 23 in the previous quarter.

We discussed Douglas Emmett, Inc. (NYSE:DEI) in another article and shared Baron Growth Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q1 2023 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.