Baron Funds, an asset management company, has published its “Baron Real Estate Fund” investor letter for the second quarter of 2021 – a copy of which can be downloaded here. The fund’s institutional stocks returned 4.65% quarterly for the second quarter of 2021, which was below the benchmarks MSCI Real Estate and MSCI US REIT, which returned 6.99% and 11.74% respectively over the same period. You can check out the fund’s top 5 holdings to get an idea of their top bets for 2021.
In Baron Funds’ investor letter in the second quarter of 2021, Las Vegas Sands Corp. (NYSE: LVS) and discussed his stance on the company. Las Vegas Sands Corp. is a Las Vegas, Nevada-based casino and resort company with a market capitalization of $ 30.5 billion. LVS achieved a return of -32.95% since the beginning of the year, while the 12-month return has fallen to -16.26%. The stock closed at $ 39.96 per share on August 13, 2021.
Here’s what Baron Funds said about Las Vegas Sands Corp. in their Q2 2021 investor letter. has to say:
“The shares of Las Vegas Sands Corporation, a leading developer of luxury casino resorts in Macau and Singapore, declined in the most recent quarter largely due to COVID-19 travel restrictions. We believe the stock is attractively valued and will rebound strongly after the travel restrictions are lifted. “
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Based on our calculations, Las Vegas Sands Corp. (NYSE: LVS) couldn’t make it onto our list of the 30 most popular stocks among hedge funds. LVS was there 62 Hedge fund portfolios at the end of the first quarter of 2021 compared to 63 Fund in the fourth quarter of 2020. Las Vegas Sands Corp. (NYSE: LVS) achieved a return of -29.60% over the past 3 months.
The reputation of hedge funds as shrewd investors has been tarnished over the past decade as their hedged returns have not kept up with the unsecured returns of market indices. Our research has shown that hedge fund small-cap stock selection beat the market by double digits annually between 1999 and 2016, but the outperformance margin has been decreasing in recent years. Nevertheless, we were able to identify a selected group of hedge fund holdings in advance that exceeded the S&P 500 ETFs by 115 percentage points since March 2017 (details see here). We were also able to identify in advance a select group of hedge fund holdings that lagged the market by 10 percentage points annually between 2006 and 2017. Interestingly, the underperformance margin of these stocks has increased in recent years. Investors who took long positions in the market and sold these stocks short would have returned more than 27% annually between 2015 and 2017. We’ve been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
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Disclosure: None. This article was originally published on Insider Monkey.
