Baron Funds released its third-quarter 2025 investor letter for the “Baron Real Estate Fund,” showing a 10.25% appreciation in Institutional Shares compared to the REIT Index’s 4.49% and the Real Estate Index’s 5.65%. Download the full letter to see the fund’s top five holdings for 2025.

In the same letter, Baron Real Estate Fund highlighted Airbnb, Inc. (NASDAQ:ABNB) as a significant stock, with a one-month return of -1.39% and shares losing 7.71% in the last 52 weeks. On November 11, 2025, Airbnb, Inc. (NASDAQ:ABNB) stock closed at $122.53 per share.

Baron Real Estate Fund expressed concerns in its investor letter regarding Airbnb, Inc. (NASDAQ:ABNB)’s performance in the recent quarter, despite robust second-quarter results. Market worries include potential growth deceleration in the third quarter and uncertainties related to leisure travel trends and economic conditions.

While Airbnb, Inc. (NASDAQ:ABNB) is not among the 30 most popular stocks among hedge funds, the company reported revenue of $4.1 billion in the third quarter of 2025, a 10% year-over-year increase. Some believe there are AI stocks with greater upside potential and less downside risk than Airbnb, Inc. (NASDAQ:ABNB).

In a separate article, Airbnb, Inc. (NASDAQ:ABNB) was listed as one of the best up-and-coming stocks to buy. For more investor letters from hedge funds and leading investors, visit the hedge fund investor letters Q3 2025 page. Explore the best and worst Dow stocks for the next 12 months and 10 unstoppable stocks that could double your money.

Read more at Yahoo Finance: Airbnb (ABNB) Declined in Q3 Despite Reporting Strong Results