Baron Funds, an asset management company, has released its Q3 2021 “Baron Real Estate Fund” letter to investors – a copy of which can be downloaded here. A modest decline of 1.66% was recorded by the fund’s institutional stocks for the third quarter of 2021, slightly underperforming its main benchmark, the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index” ) and the MSCI US REIT (the “REIT Index”), which increased 0.10% and 0.75%, respectively. You can check out the top 5 holdings in the fund to get a feel for their top picks for 2021.
Baron Funds, in its letter to investors for the third quarter of 2021, mentioned Caesars Entertainment, Inc. (NASDAQ: CZR) and discussed his position on the company. Caesars Entertainment, Inc. is a Reno, Nevada-based games company with a market capitalization of $ 23.8 billion. CZR has returned 50.45% year-to-date, while its 12-month returns are up 122.99%. The stock closed at $ 111.74 per share on November 2, 2021.
Here’s what Baron Funds has to say about Caesars Entertainment, Inc. in his letter to investors Q3 2021:
“Caesars Entertainment Company: Caesars is the largest and most diverse casino games and entertainment company in the United States. The company operates 47 casino properties in 13 states and 5 countries and has a # 1 or # 2 market share position in most markets. Brands include Caesars, Harrah’s, Planet Hollywood, Paris Las Vegas, and Nobu Hotel, among others. Led by highly regarded CEO Tom Reeg, we believe Caesar’s has several opportunities to continue driving strong cash flow growth and creating value through operational improvements, growing sports betting market share. , selling real estate assets, reducing debt and making continued investments in customer engagement, hotel room products and digital technology. “
Pixabay / public domain
Based on our calculations, Caesars Entertainment, Inc. (NASDAQ: CZR) was unable to secure a spot on our list of the 30 most popular stocks among hedge funds. CZR was listed in 73 hedge fund portfolios at the end of the first half of 2021, up from 76 funds in the previous quarter. Caesars Entertainment, Inc. (NASDAQ: CZR) has generated a return of 28.76% in the past 3 months.
The reputation of hedge funds as savvy investors has been tarnished over the past decade, as their hedged returns could not keep up with the unhedged returns of stock indices. Our research has shown that small-cap hedge fund stock selection managed to beat the market by double digits every year between 1999 and 2016, but the margin for outperformance has shrunk in recent years. Nonetheless, we were still able to identify in advance a select group of hedge funds that have outperformed S&P 500 ETFs by 115 percentage points since March 2017 (see details here). We were also able to identify in advance a select group of hedge funds that underperformed the market by 10 percentage points per year between 2006 and 2017. Interestingly, the margin of underperformance of these stocks has increased in recent years. Investors who are long in the market and short on these stocks would have reported more than 27% per year between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
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Disclosure: none. This article originally appeared on Insider Monkey.