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 MGM Resorts International (NYSE:MGM) in the first quarter 2023 investor letter. Headquartered in Las Vegas, Nevada, MGM Resorts International (NYSE:MGM) owns and operates casino, hotel, and entertainment resorts. On June 27, 2023, MGM Resorts International (NYSE:MGM) stock closed at $42.44 per share. One-month return of MGM Resorts International (NYSE:MGM) was 8.02%, and its shares gained 45.49% of their value over the last 52 weeks. MGM Resorts International (NYSE:MGM) has a market capitalization of $15.44 billion.
Baron Real Estate Fund made the following comment about MGM Resorts International (NYSE:MGM) in its first quarter 2023 investor letter:
“MGM Resorts International (NYSE:MGM) is a leading global casino and entertainment company with 29 unique hotels and casinos including some of the most recognizable resort brands such as Bellagio, MGM Grand, ARIA, and Park MGM.
At its recent price of only $44 per share, we believe MGM’s domestic valuation is compelling at a sizeable discount to our estimate of the company’s sum-of-the-parts value of approximately $60 per share.
MGM Resorts International is a global casino and entertainment company that has properties in Las Vegas, high-end U.S. regional destinations, and Macau. Shares performed well in the first quarter following strong year-end business results and expectations for strong growth in 2023.
We remain optimistic about the prospects for MGM because:
We expect growth prospects in Las Vegas, which represent approximately 65% of the company’s cash flow, to remain strong due to strength in business group and convention activity, an increase in international visitation, and events throughout the calendar year (concerts, shows, and sports such as Formula 1 racing), which should appeal to leisure travelers…” (Click here to read the full text)
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MGM Resorts International (NYSE:MGM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held MGM Resorts International (NYSE:MGM) at the end of first quarter 2023 which was 48 in the previous quarter.
We discussed MGM Resorts International (NYSE:MGM) in another article and shared Longleaf Partners Fund’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.
