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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 Taylor Morrison Home Corporation (NYSE:TMHC). Taylor Morrison Home Corporation (NYSE:TMHC) is a US-based land developer and homebuilder. The one-month return of Taylor Morrison Home Corporation (NYSE:TMHC) was 4.41%, and its shares lost 1.95% of their value over the last 52 weeks. On May 14, 2025, Taylor Morrison Home Corporation (NYSE:TMHC) stock closed at $58.93 per share with a market capitalization of $5.915 billion.
Baron Real Estate Fund stated the following regarding Taylor Morrison Home Corporation (NYSE:TMHC) in its Q1 2025 investor letter:
"Taylor Morrison Home Corporation (NYSE:TMHC) is one of the nation’s leading homebuilders, with a diversified business mix across buyer type and price points. Management aspires to increase the size of the business by over 50% over the next three to four years.
A residential home with a white picket fence, showcasing the high standards of construction.
Taylor Morrison Home Corporation (NYSE:TMHC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Taylor Morrison Home Corporation (NYSE:TMHC) at the end of the fourth quarter which was 30 in the previous quarter. While we acknowledge the potential of Taylor Morrison Home Corporation (NYSE:TMHC) 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.