Baron Funds, an asset management firm, published its “Baron Real Estate Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Baron Real Estate Fund (the “Fund”) declined 10.76% (Institutional Shares) in the first quarter of 2022, modestly outperforming its primary benchmark, the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”), which declined 11.03%. The Fund underperformed the MSCI US REIT Index (the “REIT Index”), which declined 4.28%. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.
In its Q1 2022 investor letter, Baron Real Estate Fund mentioned Travel + Leisure Co. (NYSE:TNL) and explained its insights for the company. Founded in 2006, Travel + Leisure Co. (NYSE:TNL) is an Orlando, Florida-based timeshare company with a $4.1 billion market capitalization. Travel + Leisure Co. (NYSE:TNL) delivered a -13.01% return since the beginning of the year, while its 12-month returns are down by -26.43%. The stock closed at $48.08 per share on May 23, 2022.
Here is what Baron Real Estate Fund has to say about Travel + Leisure Co. (NYSE:TNL) in its Q1 2022 investor letter:
“Following strong quarterly business results, the shares of Travel + Leisure Co. (TNL), a leading timeshare and hospitality company, performed well in the most recent quarter. We participated in the company’s investor day in September 2021 and remain encouraged by management’s four-year growth plan, which includes expectations to grow earnings at a compound annual growth rate of 17% to 22%. Management also expects to generate approximately $3 billion of cumulative cash flow in the next four years that can be used for dividends, share repurchases, strategic mergers and acquisitions, and reinvesting in the business. We believe the shares are attractively valued at only 12.5 times estimated 2022 earnings per share and offer compelling prospects for strong shareholder returns over the next few years.”
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Our calculations show that Travel + Leisure Co. (NYSE:TNL) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Travel + Leisure Co. (NYSE:TNL) was in 34 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 33 funds in the previous quarter. Travel + Leisure Co. (NYSE:TNL) delivered a -18.51% return in the past 3 months.
In February 2022, we published an article that includes Travel + Leisure Co. (NYSE:TNL) in 5 Stocks to Invest In According to Bart Baum’s Ionic Capital. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.
Disclosure: None. This article is originally published at Insider Monkey.