Baron Funds: “We are Optimistic About our Investment in DiamondRock (DRH)”
Baron Funds, an investment management firm, released its “Baron Real Estate Income Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. In the first nine months of 2023, the Fund has increased 1.20%, outperforming the REIT Index, which declined 2.89%. As of September 30, 2023, the Fund has maintained its top 3% ranking among all real estate funds for its 5-year performance period. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q2 2023 investor letter, Baron Real Estate Income Fund mentioned DiamondRock Hospitality Company (NYSE:DRH) and explained its insights for the company. Founded in 2004, DiamondRock Hospitality Company (NYSE:DRH) is a Maryland-based real estate investment trust company with a $1.6 billion market capitalization. DiamondRock Hospitality Company (NYSE:DRH) delivered a -3.91% return since the beginning of the year, while its 12-month returns are down by -9.54%. The stock closed at $7.87 per share on October 19, 2023.
Here is what Baron Real Estate Income Fund has to say about DiamondRock Hospitality Company (NYSE:DRH) in its Q2 2023 investor letter:
"We are optimistic about our REIT investment in DiamondRock Hospitality Company (NYSE:DRH). We initiated a position in DiamondRock Hospitality Company during the quarter. DiamondRock owns high-quality hotel assets skewed towards resort and leisure. While macroeconomic concerns have limited near-term share price performance, we continue to believe that the value of the irreplaceable leisure-focused portfolio the company has curated over the past 20 years will ultimately be realized either in the public or private markets. There is a significant amount of undeployed private equity capital on the sidelines geared toward the exact types of assets that DiamondRock owns. Shares remained attractively valued both on a relative and absolute basis with the company being conservatively capitalized relative to its peers and with no near-term debt maturities."
A real estate CEO pointing to a hospital facility on a financial chart. Editorial photo for a financial news article. 8k. --ar 16:9
Our calculations show that DiamondRock Hospitality Company (NYSE:DRH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. DiamondRock Hospitality Company (NYSE:DRH) was in 23 hedge fund portfolios at the end of the second quarter of 2023, compared to 20 funds in the previous quarter. DiamondRock Hospitality Company (NYSE:DRH) delivered a -2.48% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
