Baron Funds released its second-quarter 2025 investor letter for the Baron Real Estate Fund, showing a 3.61% rise for Institutional Shares. Top holdings and performance compared to REIT and Real Estate Indexes are detailed in the letter. Download the letter to learn more about the fund’s best picks in 2025.

In its second-quarter 2025 investor letter, Baron Real Estate Fund highlighted Extra Space Storage Inc. (NYSE:EXR) as a notable stock. Shares of Extra Space Storage Inc. (NYSE:EXR) experienced a one-month return of -8.88% and closed at $139.30 on August 1, 2025, with a market cap of $30.87 billion.

Baron Real Estate Fund sold its position in Extra Space Storage Inc. (NYSE:EXR) during the quarter, citing concerns about lackluster home sales affecting self-storage demand. The fund views current valuations as fair and opted to reallocate capital to investments with greater return potential.

Despite its potential as an investment, Extra Space Storage Inc. (NYSE:EXR) is not among the 30 most popular stocks among hedge funds. While 40 hedge fund portfolios held the stock at the end of the first quarter, certain AI stocks are seen as offering greater upside potential with less downside risk. Explore our free report on the best short-term AI stock for more information.

Read more at Yahoo Finance: Here’s Why Baron Real Estate Fund Sold Extra Space Storage (EXR) in Q2