Baron Funds, an investment management company, released its “Baron Real Estate Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund rose 6.17% (Institutional Shares) compared to a 4.90% return for the MSCI US REIT Index (the “REIT Index”) and an 8.71% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). For 2022, the fund declined 28.44% compared to a 23.84% decline for the MSCI Real Estate Index and a 25.37% decline for the REIT Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Baron Funds highlighted stocks like Floor & Decor Holdings, Inc. (NYSE:FND) in the Q4 2022 investor letter. Headquartered in Atlanta, Georgia, Floor & Decor Holdings, Inc. (NYSE:FND) is a multi-channel specialty retailer and commercial flooring distributor. On January 30, 2023, Floor & Decor Holdings, Inc. (NYSE:FND) stock closed at $85.27 per share. One-month return of Floor & Decor Holdings, Inc. (NYSE:FND) was 17.86%, and its shares lost 22.54% of their value over the last 52 weeks. Floor & Decor Holdings, Inc. (NYSE:FND) has a market capitalization of $9.049 billion.
Baron Funds made the following comment about Floor & Decor Holdings, Inc. (NYSE:FND) in its Q4 2022 investor letter:
“Floor & Decor Holdings, Inc. (NYSE:FND) is a leading and high-growth specialty retailer of hard-surface flooring. The company offers the lowest prices and the broadest differentiated in-stock selection of tile, wood, laminate, and other flooring options and has highly compelling long-term growth prospects. We expect the company to continue to grow its store count by approximately 20% per year for the next few years. The company operates approximately 190 stores, and we believe it has the potential to grow its store count in the U.S. to more than 400 stores over time.
Following an almost 50% decline in its shares in 2022, we believe this best-in-class company is currently valued at a compelling multiple of only 23 times our estimate of 2023 earnings per share. This compares favorably to its historically average P/E multiple of approximately 40 times earnings per share.”
Photo by Max Williams on Unsplash
Floor & Decor Holdings, Inc. (NYSE:FND) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Floor & Decor Holdings, Inc. (NYSE:FND) at the end of the third quarter, which was 29 in the previous quarter.
We discussed Floor & Decor Holdings, Inc. (NYSE:FND) in another article and shared TimesSquare Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 25 Least Developed Countries in Europe
- 12 Cash Rich Small Cap Stocks to Buy
- 15 Largest Australian Companies by Revenue
Disclosure: None. This article is originally published at Insider Monkey.
