Baron cited concerns over credit quality, software exposure, and retail redemptions in its Q1 2026 investor letter.
Baron Real Estate Fund sold its position in Blackstone Inc. (BX) during Q1 2026, citing industry-wide challenges. Blackstone, the largest alternative asset manager with $1.3 trillion in assets under management, faced pressure from negative headlines, including credit quality issues in its private credit portfolio and rising retail investor redemptions.
Blackstone shares closed at $122.79 on June 12, 2026, reflecting a 4.91% one-month return but an 11.19% decline over the past 52 weeks. The company’s market capitalization stands at $150.08 billion. Investor concerns also included exposure to software investments and reduced monetization activity expectations amid market volatility.
The fund’s decision highlights broader skepticism toward alternative asset managers, particularly those with significant retail-focused strategies.