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aron Funds, a leading investment management company, released its second-quarter 2025 investor letter for the "Baron Real Estate Income Fund." The fund's performance was highlighted in the letter, which can be downloaded here. In Q2 2025, the Baron Real Estate Income Fund decreased by 0.23% (Institutional Shares), outperforming the MSCI US REIT Index, which declined by 1.46%. Since its inception on December 29, 2017, through June 30, 2025, the fund achieved a cumulative return of 87.02%, more than double the 35.45% return of the REIT Index.

    The letter also discussed Weyerhaeuser Company (NYSE:WY), a leading private owner and operator of timberlands. The company's shares lost 16.65% of their value over the last 52 weeks, with a one-month return of -0.28%. On August 11, 2025, Weyerhaeuser Company (NYSE:WY) stock closed at $25.28 per share, with a market capitalization of $18.24 billion.

    In its second-quarter letter, Baron Real Estate Income Fund stated that it had exited its position in Weyerhaeuser Company (NYSE:WY), citing a softer-than-expected residential housing market and weak demand environment for lumber and wood products. The fund plans to continue monitoring the business and potentially re-engage at an appropriate time.

    While Weyerhaeuser Company (WY) is not on our list of top stocks among hedge funds, it was held by 43 hedge fund portfolios at the end of the first quarter. However, we believe certain AI stocks offer greater upside potential and carry less downside risk. For investors looking for an undervalued AI stock with significant upside potential, see our free report on the best short-term AI stock.