Baron Funds, an investment management company, released its “Baron Real Estate Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund declined 4.86% (Institutional Shares) compared to a 4.99% decline for its primary benchmark, the MSCI USA IMI Extended Real Estate Index. At the same time, the fund outperformed the MSCI US REIT Index, which fell 10.28% in the quarter. 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 Q3 2022 investor letter. Headquartered in Atlanta, Georgia, Floor & Decor Holdings, Inc. (NYSE:FND) is a commercial retailer and flooring distributor. On November 18, 2022, Floor & Decor Holdings, Inc. (NYSE:FND) stock closed at $72.90 per share. One-month return of Floor & Decor Holdings, Inc. (NYSE:FND) was -2.03% and its shares lost 44.43% of their value over the last 52 weeks. Floor & Decor Holdings, Inc. (NYSE:FND) has a market capitalization of $7.736 billion.
Baron Funds made the following comment about Floor & Decor Holdings, Inc. (NYSE:FND) in its Q3 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. The company’s shares are currently valued at only 24 times 2023 estimated earnings per share versus its historical range of 25 to 50 times earnings per share.
Following a sharp decline in its shares in the first six months of 2022 and strong third quarter earnings results, the shares of Floor & Decor Holdings, Inc. performed well in the most recent quarter. 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 are 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 153 stores to more than 400 stores, 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. At its recent price of only $71, we believe the shares are attractively valued”
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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, 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 growth stock picks of Warren Buffett. In addition, please check out our hedge fund investor letters Q3 2022 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.
