Baron Funds, an investment management company, released its “Baron Real Estate Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the first half of 2023, the fund rose 15.00% (Institutional Shares) compared to a 4.78% return for the MSCI US REIT Index (the “REIT Index”) and a 12.11% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). The fund rose 7.41%, modestly outperforming the indexes in the second quarter, which returned 2.34% and 7.04%, respectively, in the same period. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Real Estate Fund highlighted stocks like Wynn Resorts, Limited (NASDAQ:WYNN) in the second quarter 2023 investor letter. Headquartered in Las Vegas, Nevada, Wynn Resorts, Limited (NASDAQ:WYNN) designs, develops, and operates destination casino resorts. On July 25, 2023, Wynn Resorts, Limited (NASDAQ:WYNN) stock closed at $108.84 per share. One-month return of Wynn Resorts, Limited (NASDAQ:WYNN) was 2.91%, and its shares gained 77.70% of their value over the last 52 weeks. Wynn Resorts, Limited (NASDAQ:WYNN) has a market capitalization of $12.386 billion.
Baron Real Estate Fund made the following comment about Wynn Resorts, Limited (NASDAQ:WYNN) in its second quarter 2023 investor letter:
“After increasing 23% during the period held in the first quarter of 2023, the shares of Wynn Resorts, Limited (NASDAQ:WYNN), an owner and operator of hotels and casino resorts, modestly declined in the most recent quarter.
We remain optimistic about the multi-year prospects for the company. We believe the re-emergence of business activity in Macau will drive additional shareholder value. If cash flow returns to the level achieved in 2019 prior to COVID-19, we believe Wynn’s shares will increase to $150 per share, or approximately 45% higher than where it has recently traded.
We believe additional drivers for future value creation beyond a re-emergence in Macau business activity include: (i) our expectation for long-term growth opportunities in the company’s U.S.-centric markets of Las Vegas and Boston, including an expansion of Wynn’s Encore Boston Harbor resort; (ii) Wynn’s plans to develop an integrated resort in the United Arab Emirates with 1,500 hotel rooms and a casino that is similar in size to that of its Encore Boston Harbor; (iii) opportunities to improve cash-flow margins by rightsizing labor and achieving lower staff costs in Macau; (iv) the possibility that Wynn is granted a New York casino license in 2023; and (v) an expansion in the company’s valuation multiple to levels achieved prior to the pandemic.”
Copyright: sainaniritu / 123RF Stock Photo
Wynn Resorts, Limited (NASDAQ:WYNN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Wynn Resorts, Limited (NASDAQ:WYNN) at the end of first quarter which was 36 in the previous quarter.
We discussed Wynn Resorts, Limited (NASDAQ:WYNN) in another article and shared the list of cheap travel stocks to bu. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 20 Countries with the Highest Rates of Skin Cancer
- 30 Countries with the Highest Gas Prices
- Nouriel Roubini on Bitcoin and Other Predictions
Disclosure: None. This article is originally published at Insider Monkey.
