Baron Funds, an investment management company, released its “Baron Real Estate Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund rose 7.07% (Institutional Shares) compared to a 2.39% return for the MSCI US REIT Index (the “REIT Index”) and a 4.73% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). The firm is optimistic about the prospects for the stock market, public real estate securities, and the fund. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Real Estate Fund highlighted stocks like Floor & Decor Holdings, Inc. (NYSE:FND) in the Q1 2023 investor letter. Headquartered in Atlanta, Georgia, Floor & Decor Holdings, Inc. (NYSE:FND) is a retailer of hard surface flooring that provides tile, wood, laminate, vinyl, and natural stone flooring products and decorative accessories. On June 27, 2023, Floor & Decor Holdings, Inc. (NYSE:FND) stock closed at $102.50 per share. One-month return of Floor & Decor Holdings, Inc. (NYSE:FND) was 12.25%, and its shares gained 54.67% of their value over the last 52 weeks. Floor & Decor Holdings, Inc. (NYSE:FND) has a market capitalization of $10.893 billion.
Baron Real Estate Fund made the following comment about Floor & Decor Holdings, Inc. (NYSE:FND) in its first quarter 2023 investor letter:
“Following a sharp decline in its shares in 2022, Floor & Decor Holdings, Inc. (NYSE:FND)’s share price increased 40% in the first three months of 2023 due to better-than-expected fourth quarter business results and indications that 2023 growth expectations may be better than feared.
The company is a leading and high-growth specialty retailer of hard-surface flooring offering the industry’s broadest in-stock selection of tile, wood, laminate, vinyl, and natural stone flooring.
We remain optimistic about the long-term, multi-pronged growth prospects for the company. They include the potential to grow its store count in the U.S. from 191 stores to more than 400, strong comparable store sales growth, growth in the company’s online business, growth opportunities with professional and commercial customers, and designer services. The company is also well positioned to benefit from the cyclical and secular tailwinds that should aid the U.S. housing market in the years ahead. Despite its strong share price performance in the first three months of 2023, we continue to believe the shares offer strong long-term return potential over the next few years.”
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Floor & Decor Holdings, Inc. (NYSE:FND) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held Floor & Decor Holdings, Inc. (NYSE:FND) at the end of first quarter 2023 which was 37 in the previous quarter.
We discussed Floor & Decor Holdings, Inc. (NYSE:FND) in another article and shared Polen Global SMID Company Growth Strategy’s views on the company. 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.
