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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 Louisiana-Pacific Corporation (NYSE:LPX). Headquartered in Nashville, Tennessee, Louisiana-Pacific Corporation (NYSE:LPX) provides building solutions for new home construction, repair and remodeling, and outdoor structure markets. The one-month return of Louisiana-Pacific Corporation (NYSE:LPX) was 10.10%, and its shares gained 3.38% of their value over the last 52 weeks. On May 14, 2025, Louisiana-Pacific Corporation (NYSE:LPX) stock closed at $92.70 per share with a market capitalization of $6.451 billion.
Baron Real Estate Fund stated the following regarding Louisiana-Pacific Corporation (NYSE:LPX) in its Q1 2025 investor letter:
"Louisiana-Pacific Corporation (NYSE:LPX) is a rapidly growing U.S. building products company that manufactures engineered wood siding and other wood products. The company benefits from leadership positions, secular material conversion, a rich product innovation pipeline, a strong balance sheet, and an excellent management team.
A construction worker standing on a rooftop with a toolbelt in hand, looking out at a new home development in the background.
Louisiana-Pacific Corporation (NYSE:LPX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held Louisiana-Pacific Corporation (NYSE:LPX) at the end of the fourth quarter which was 39 in the previous quarter. Louisiana-Pacific Corporation (NYSE:LPX) reported net sales of $724 million in Q1 2025, which was flat compared to the previous year's quarter. While we acknowledge the potential of Louisiana-Pacific Corporation (NYSE:LPX) 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.