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Learn moreBaron Capital, an investment management company, released its Q2 2026 letter for the "Baron Real Estate Income Fund." The Fund gained 12.18% (Institutional Shares) during the quarter, modestly outperforming the MSCI US REIT Index, which increased 11.84%. The letter can be downloaded here. Its long-term performance also remains strong, with Morningstar ranking it the #2 real estate fund since its December 2017 inception. The letter discusses management's current views, portfolio composition, key contributors and detractors, recent activity, and the outlook for real estate and the Fund. Management believes a multi-year recovery in real estate is beginning to emerge, despite elevated interest rates, housing affordability pressures, and AI-related disruption. Its constructive outlook is supported by attractive valuations, accelerating M&A, favorable supply-demand dynamics, healthy balance sheets, improving debt conditions, and increasing recognition of real estate as an AI beneficiary. The Fund remains positioned to benefit from improving growth, rising dividends, and potential valuation normalization. Please review the Fund's top five holdings to gain insights into their key selections for 2026.
In its second-quarter 2026 investor letter, Baron Real Estate Fund highlighted Vail Resorts, Inc. (NYSE:MTN). Vail Resorts, Inc. (NYSE:MTN) operates mountain resorts and regional ski areas, which detracted from the fund's performance this quarter. On September 18, 2026, Vail Resorts, Inc. (NYSE:MTN) closed at $139.80 per share. Over the past month, Vail Resorts, Inc. (NYSE:MTN) declined 6.80%, and its shares lost 2.71% over the past 52 weeks. Vail Resorts, Inc. (NYSE:MTN) has a market capitalization of $4.98 billion with a 52-week trading range between $118.51 and $163.34.
Baron Real Estate Fund stated the following regarding Vail Resorts, Inc. (NYSE:MTN) in its Q2 2026 investor letter:
Story Continues"Shares of Vail Resorts, Inc. (NYSE:MTN) continued to lag following the poor winter snow season across its resort portfolio and the worst snowfall in the Colorado Rockies on record. As a result, this led to depressed results and forward demand with pass sales tracking down 10% year-over-year per the recent update. We believe much of the softening pass demand and earnings revision following the historically poor snow year was largely priced in and shares present compelling value at approximately nine times cash flow. We are encouraged by management's efforts to turnaround growth and find cost efficiencies while starting from a cyclical weather trough."