[ad_1]
Investment management company Baron Funds has announced the fourth quarter 2023 investor letter for Baron Real Estate Fund. You can download a copy of the same here. The fund performed well in 2023, generating a return of 25.04% (institutional shares). This was more than double the MSCI US REIT Index (REIT Index), which rose 12.27%, and also outpaced the MSCI USA IMI Extended Real Estate Index, which returned 23.09%. Plus, check out the fund’s top 5 holdings to find out the best stocks for 2023.
Baron Real Estate Fund is an affiliate of Lennar Corporation (NYSE:Len) in the fourth quarter 2023 investor letter. Based in Miami, Florida, Lennar Corporation (NYSE:LEN) operates as a home builder. On January 22, 2024, Lennar Corporation (NYSE:LEN) stock closed at $155.27 per share. Lennar Corporation (NYSE: LEN)’s 1-month return is his 4.43% and the company’s stock has increased his 56.19% in value over the past 52 weeks. Lennar Corporation (NYSE:LEN) has a market capitalization of $43.718 billion.
Barron Real Estate Fund said the following about Lennar Corporation (NYSE:LEN) in its Q4 2023 investor letter:
“Stock Prices of Our Investments in Home Builders – Toll Brothers, Inc., DR Horton, Inc., and Lennar Corporation (NYSE:LEN) – rose 39.4%, 41.8%, and 33.2%, respectively, in the most recent quarters. This is due in part to continued strong quarterly results, management’s optimism about the outlook for 2024, and a decline in 30-year mortgage rates during the quarter, which increased by more than 100 basis points.
2023 was a great year for social housing builders. Despite affordability challenges due to rising mortgage rates and home prices, housing fundamentals remained strong. Years of pent-up demand, fears that mortgage rates will rise, low inventory in the existing home market, and an overall lack of housing supply are causing homebuyers to “tighten their wallets” partly out of fear. Now it looks like this. That they might miss out on the opportunity to buy a house. The fund’s homebuilders Toll Brothers, DR Horton, and Lennar grew by 108.0%, 71.4%, and 66.3%, respectively, in 2023.
Although we expect the fund’s homebuilder investments to grow more modestly in 2024, we remain optimistic about the long-term prospects for Toll Brothers, DR Horton and Lennar. Additionally, we continue to believe there is a compelling case for homebuilder valuations to be revalued over time.
Since the beginning of 2020, DR Horton, Lennar and Toll Brothers have demonstrated considerable resiliency and operational capabilities. Despite several black swan events, including COVID-19, mortgage interest rates surging from 3% to 8%, and supply chain disruptions, the companies are operating extremely well. Home purchase demand has proven resilient. ”
A builder wearing a helmet admires his newly built smart home.
Lennar Corporation (NYSE:LEN) is not included in the list of 30 most popular stocks among hedge funds. Our database shows that 63 hedge fund portfolios held Lennar Corporation (NYSE:LEN) at the end of the third quarter, compared to 66 in the prior quarter. Additionally, for investor letters from hedge funds and other leading investors, please visit our Hedge Fund Investor Letters Q4 2023 page.
Recommended articles:
Disclosure: None. This article was originally published on Insider Monkey.
[ad_2]
Source link
