Baron Funds, an investment management company, released its “Baron Real Estate Fund” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The fund had a strong performance in 2023 and generated a gain of 25.04% (Institutional Shares). This is more than double the MSCI US REIT Index (the REIT Index), which rose 12.27% and also outperformed the MSCI USA IMI Extended Real Estate Index’s 23.09% return. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Real Estate Fund featured stocks such as American Tower Corporation (NYSE:AMT) in the fourth quarter 2023 investor letter. American Tower Corporation (NYSE:AMT) is a multitenant communications real estate operator. On January 22, 2024, American Tower Corporation (NYSE:AMT) stock closed at $204.02 per share. One-month return of American Tower Corporation (NYSE:AMT) was -5.19%, and its shares lost 5.40% of their value over the last 52 weeks. American Tower Corporation (NYSE:AMT) has a market capitalization of $95.107 billion.
Baron Real Estate Fund stated the following regarding American Tower Corporation (NYSE:AMT) in its fourth quarter 2023 investor letter:
“Early in 2023, we sold the majority of our position in American Tower Corporation (NYSE:AMT), a global operator of over 200,000 wireless towers, and even further reduced our modest position in the third quarter of 2023. We had concluded in late 2022 and early 2023 that growth expectations were too high given forthcoming headwinds from significantly higher financing costs (20%-plus exposure to floating rate debt), upcoming debt maturities, continued payment shortfalls from a key tenant in India, foreign exchange headwinds, and a reduction in mobile carrier capital expenditures.
Following a sharp decline in American Tower’s shares in the first nine months of 2023, we began rebuilding our position because we believed that the company’s shares had become more attractively valued, growth headwinds were better understood, and the potential monetization event of its India business would ultimately be value accretive to its business. Further, we believe that 2023 will mark the trough in earnings growth for American Tower and growth should reaccelerate in the next few years.”
A broadcasting tower broadcasting radio waves across the lands.
American Tower Corporation (NYSE:AMT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held American Tower Corporation (NYSE:AMT) at the end of third quarter which was 60 in the previous quarter.
We discussed American Tower Corporation (NYSE:AMT) in another article and shared ClearBridge Investments’ views on the company. In addition, please check out our hedge fund investor letters Q4 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.
