Here’s Why Baron Funds Reduced its BG SMITH Properties (JBGS) Position

Baron Funds, an asset management firm, published its “Baron Discovery Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.13% was delivered by the fund’s institutional shares for the fourth quarter of 2021, which was better than the Russell 2000 Growth Index’s 0.01% return, but below the S&P 500 Index’s gain of 11.03% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Discovery Fund, in its Q4 2021 investor letter, mentioned JBG SMITH Properties (NYSE: JBGS) and discussed its stance on the firm. JBG SMITH Properties is a Chevy Chase, Maryland-based real estate investment trust company with a $3.5 billion market capitalization. JBGS delivered a -4.42% return since the beginning of the year, while its 12-month returns are down by -12.53%. The stock closed at $27.44 per share on January 20, 2022.

Here is what Baron Discovery Fund has to say about JBG SMITH Properties in its Q4 2021 investor letter:

“We have other investments that we believe will benefit from a normalization of consumer behavior, such as JBG SMITH Properties, an owner of multi-family and office real estate, which benefits from workers returning to offices again. We reduced our position in JBG SMITH Properties to help fund additional purchases of Rexford during the quarter.”

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Our calculations show that JBG SMITH Properties (NYSE: JBGS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. JBGS was in 15 hedge fund portfolios at the end of the third quarter of 2021, compared to 17 funds in the previous quarter. JBG SMITH Properties (NYSE: JBGS) delivered a -8.53% return in the past 3 months.

In September 2021, we also shared another hedge fund’s views on JBGS in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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