Baron Funds, an investment management company, released its “Baron Real Estate Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund delivered strong results in the quarter. The fund appreciated 10.25% (Institutional Shares) compared to the MSCI US REIT Index’s (the REIT Index) 4.49% and the MSCI USA IMI Extended Real Estate Index’s 5.65%. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its third-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as Floor & Decor Holdings, Inc. (NYSE:FND). Floor & Decor Holdings, Inc. (NYSE:FND) is a multi-channel specialty retailer of hard surface flooring and related accessories. The one-month return of Floor & Decor Holdings, Inc. (NYSE:FND) was -14.20%, and its shares lost 40.63% of their value over the last 52 weeks. On November 11, 2025, Floor & Decor Holdings, Inc. (NYSE:FND) stock closed at $60.79 per share, with a market capitalization of $6.55 billion.
Baron Real Estate Fund stated the following regarding Floor & Decor Holdings, Inc. (NYSE:FND) in its third quarter 2025 investor letter:
“Following a sharp decline in its shares in the first six months of 2025, we began acquiring shares of Floor & Decor Holdings, Inc. (NYSE:FND), a specialty retailer and commercial flooring distributor of hard-surface flooring (tile, vinyl, wood, stone, and laminate) and accessories.
Floor & Decor Holdings, Inc. (NYSE:FND) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 46 hedge fund portfolios held Floor & Decor Holdings, Inc. (NYSE:FND) at the end of the second quarter, up from 44 in the previous quarter. Floor & Decor Holdings, Inc.’s (NYSE:FND) sales for the third quarter grew 5.5% to $1.180 billion. While we acknowledge the potential of Floor & Decor Holdings, Inc. (NYSE:FND) 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.
