Soumya Eswaran
3 min read
In This Article:
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 Toll Brothers, Inc. (NYSE:TOL). Toll Brothers, Inc. (NYSE:TOL) is a US-based home builder that designs, builds, markets, sells, and arranges financing for a range of detached and attached homes. The one-month return of Toll Brothers, Inc. (NYSE:TOL) was 11.87%, and its shares lost 19.87% of their value over the last 52 weeks. On May 14, 2025, Toll Brothers, Inc. (NYSE:TOL) stock closed at $105.07 per share with a market capitalization of $10.448 billion.
Baron Real Estate Fund stated the following regarding Toll Brothers, Inc. (NYSE:TOL) in its Q1 2025 investor letter:
"Toll Brothers, Inc. (NYSE:TOL) is a leading luxury homebuilder in the U.S. with an exceptional management team and a large, valuable owned land real estate portfolio. Toll Brothers is more insulated than its peers from elevated mortgage rates because approximately 25% of Toll Brothers home buyers pay 100% in cash.
A team of architects meeting around a blueprint to discuss the design of a high-end apartment rental.
Toll Brothers, Inc. (NYSE:TOL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held Toll Brothers, Inc. (NYSE:TOL) at the end of the fourth quarter which was 54 in the previous quarter. While we acknowledge the potential of Toll Brothers, Inc. (NYSE:TOL) 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.
