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 Corporation (NYSE:BN). Brookfield Corporation (NYSE:BN) is an alternative asset manager and REIT/Real Estate Investment Manager firm. The one-month return of Brookfield Corporation (NYSE:BN) was 1.60%, and its shares gained 44.03% of their value over the last 52 weeks. On July 21, 2025, Brookfield Corporation (NYSE:BN) stock closed at $65.33 per share with a market capitalization of $100.196 billion.
Baron Real Estate Fund stated the following regarding Brookfield Corporation (NYSE:BN) in its second quarter 2025 investor letter:
“Brookfield Corporation (NYSE:BN) is a leading global owner and operator of real assets such as real estate and infrastructure. We believe the company’s global reach, large scale capital, and the synergies among its businesses provide significant opportunities for growth. While shares performed well in the quarter, we continue to believe the company offers significant value at a recent share price of $62. Brookfield’s management team, who in our opinion is credible and conservative, believes the company is worth $100 per share today and $176 in five years. Brookfield has investments in publicly traded and private real estate-related businesses. Brookfield’s ownership interests in four publicly listed Brookfield companies (Brookfield Asset Management, Brookfield Infrastructure Partners, Brookfield Renewable, and Brookfield Business Partners) are currently valued in the public market at $52 per share or almost the same price as the share price for the entire company. The public market is currently ascribing little value to Brookfield’s non-public investments, insurance business and carried interest, which we believe are also worth at least $25 per share (net of debt) today and offer significant further upside through growth.”
Brookfield Corporation (NYSE:BN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Brookfield Corporation (NYSE:BN) at the end of the first quarter, which was 37 in the previous quarter. While we acknowledge the potential of Brookfield Corporation (NYSE:BN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
