Here’s Why Baron Funds Remains Optimistic in Pebblebrook Hotel Trust (PEB)

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 Pebblebrook Hotel Trust (NYSE:PEB) and explained its insights for the company. Founded in 2009, Pebblebrook Hotel Trust (NYSE:PEB) is a Maryland-based real estate investment trust company with a $2.3 billion market capitalization. Pebblebrook Hotel Trust (NYSE:PEB) delivered a -21.68% return since the beginning of the year, while its 12-month returns are down by -22.41%. The stock closed at $17.52 per share on September 16, 2022.

Here is what Baron Real Estate Income Fund has to say about Pebblebrook Hotel Trust (NYSE:PEB) in its Q2 2022 investor letter:

Pebblebrook Hotel Trust is a premier hotel REIT with 55 hotels across 16 urban and resort markets. At its recent share price of only $17, the company is valued at more than a 40% discount to management’s estimate of the low end of the company’s net asset value which is $30. We have high regard for CEO Jon Bortz. On June 29, Jon acquired shares in the company at similar levels to the current price.”

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Our calculations show that Pebblebrook Hotel Trust (NYSE:PEB) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Pebblebrook Hotel Trust (NYSE:PEB) was in 20 hedge fund portfolios at the end of the second quarter of 2022, compared to 16 funds in the previous quarter. Pebblebrook Hotel Trust (NYSE:PEB) delivered a -2.23% return in the past 3 months.

In October 2021, we also shared another hedge fund’s views on Pebblebrook Hotel Trust (NYSE:PEB) in 11 Best Hotel Stocks To Invest In. 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.