Baron Funds, an investment management company, released its “Baron Real Estate Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 3.61% (Institutional Shares) in the quarter compared to a 1.46% decline for the MSCI US REIT Index (the REIT Index) and a 6.13% gain for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as Brookfield Asset Management Ltd. (NYSE:BAM). Brookfield Asset Management Ltd. (NYSE:BAM) is a subsidiary of Brookfield Corporation that provides alternative asset management services. The one-month return of Brookfield Asset Management Ltd. (NYSE:BAM) was 5.28%, and its shares gained 46.74% of their value over the last 52 weeks.  On August 1, 2025, Brookfield Asset Management Ltd. (NYSE:BAM) stock closed at $59.81 per share, with a market capitalization of $96.455 billion.

Baron Real Estate Fund stated the following regarding Brookfield Asset Management Ltd. (NYSE:BAM) in its second quarter 2025 investor letter:

“Brookfield Asset Management Ltd. (NYSE:BAM) is the asset management arm that was spun out from Brookfield Corporation in December 2022. Brookfield was a contributor to performance due to continued strong fundraising in a volatile macro and geopolitical backdrop along with improving margins and fee-related earnings growth. Brookfield Asset Management is a leading global alternative asset manager with approximately $1 trillion of assets under management across renewable power & transition, infrastructure, private equity, real estate and credit. We had previously written about and had consistently believed that the captive asset manager was undervalued when it was housed within the broader Brookfield organization. The tax-free spin-out to existing holders simplified the organization and allowed shareholders to access a steady earnings stream underpinned by base management fees (versus highly variable performance fees) that have a high degree of growth visibility. The market has come to our view with the shares of Brookfield Asset Management trading in-line or a slight premium to other alternative asset managers. We had argued for a premium valuation given our view that Brookfield Asset Management would be able to grow its fee-related earnings per share in the upper teens for the foreseeable future. We continue to believe shares are attractively valued given the multi-year earnings outlook for the Company.”