Baron Funds, an investment management company, released its “Baron Real Estate Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 3.61% (Institutional Shares) in the quarter compared to a 1.46% decline for the MSCI US REIT Index (the REIT Index) and a 6.13% gain for the MSCI USA IMI Extended Real Estate Index (the MSCI Real Estate Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Real Estate Fund highlighted stocks such as Equinix, Inc. (NASDAQ:EQIX). Equinix, Inc. (NASDAQ:EQIX) is a digital infrastructure company. The one-month return of Equinix, Inc. (NASDAQ:EQIX) is -1.94%, and its shares have lost 4.33% of their value over the last 52 weeks. On August 1, 2025, Equinix, Inc. (NASDAQ:EQIX) stock closed at $771.75 per share, with a market capitalization of $75.527 billion.

Baron Real Estate Fund stated the following regarding Equinix, Inc. (NASDAQ:EQIX) in its second quarter 2025 investor letter:

“In the most recent quarter, we purchased additional shares in Equinix, Inc. (NASDAQ:EQIX), the premier global operator of 270 network-dense, carrier-neutral colocation data centers with operations across 36 countries and 6 continents. We acquired shares at what we believed were compelling valuation levels. Shares retrenched, however, in the last few days of the quarter due to the company outlining incremental capital investments at its bi-annual Investor Day that will depress near-term growth but pay dividends longer term.