Baron Funds, an investment management company, released its “Baron Real Estate Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1 2025, stocks were sold due to economic growth slowdown, inflation, and policymaking issues, including Baron Real Estate Fund®, without considering value. The fund declined 6.69% (Institutional Shares) in the quarter compared to a 3.11% decline for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate Index) and a 0.76% gain for the MSCI US REIT Index (the REIT Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as Blackstone Inc. (NYSE:BX). Blackstone Inc. (NYSE:BX) is one of the largest alternative asset management firms specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The one-month return of Blackstone Inc. (NYSE:BX) was 13.83%, and its shares gained 16.06% of their value over the last 52 weeks. On May 14, 2025, Blackstone Inc. (NYSE:BX) stock closed at $148.42 per share with a market capitalization of $180.07 billion.
Baron Real Estate Fund stated the following regarding Blackstone Inc. (NYSE:BX) in its Q1 2025 investor letter:
“Leading real estate-focused asset managers Blackstone Inc. (NYSE:BX) and Brookfield Corporation have an opportunity to increase market share of a growing pie due to impressive investment track records and global scale advantages. They are positioned to benefit from a secular growth opportunity for alternative assets due to long track records of generating attractive relative and absolute returns with what is perceived, in some cases, as less volatility than several other investment options.”
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Blackstone Inc. (NYSE:BX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Blackstone Inc. (NYSE:BX) at the end of the fourth quarter which was 50 in the previous quarter. Blackstone Inc.’s (NYSE:BX) reported strong results in the first quarter with distributable earnings up 11% year-over-year to $1.4 billion. While we acknowledge the potential of Blackstone Inc. (NYSE:BX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
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