Gaming and Leisure Properties (GLPI) Fell Due to Investor Concerns

Baron Funds, an investment management company, released its “Baron Growth Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund rose 0.86% in the quarter (Institutional Shares), trailing the Russell 2000 Growth Index’s (the Benchmark) 11.97% gain.  The Russell 3000 Index returned 10.99% for the same period. The firm's strategy of owning a high-conviction portfolio of highly advantaged businesses was out of favor in the quarter as investors bid up relatively riskier stocks. 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 Growth Fund highlighted stocks such as Gaming and Leisure Properties, Inc. (NASDAQ:GLPI). Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) acquires, finances, and owns real estate properties to be leased to gaming operators. The one-month return of Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) was -3.30%, and its shares lost 8.25% of their value over the last 52 weeks. On September 23, 2025, Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) stock closed at $46.37 per share, with a market capitalization of $13.123 billion.

Baron Growth Fund stated the following regarding Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) in its second quarter 2025 investor letter:

"Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) is a triple net REIT that owns and leases casino properties. Shares declined during the quarter amid investor concerns that interest rates would remain higher for longer, making the company's 6% dividend yield relatively less attractive. We remain shareholders. Gaming and Leisure Properties is collecting 100% of its rent, increasing rental rates by 2% annually, and growing its dividend at a low- to mid-single-digit rate per year. With a robust balance sheet and strong free cash flow profile, we believe the company is well positioned to continue making acquisitions and returning capital to shareholders through dividends. In our view, the current yield remains compelling and, when combined with earnings growth, should drive attractive returns over time."

Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 33 hedge fund portfolios held Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) at the end of the second quarter, up from 26 in the previous quarter.  While we acknowledge the potential of Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.