Here’s Why Baron Capital is Bullish on Iron Mountain (IRM)

Here’s Why Baron Capital is Bullish on Iron Mountain (IRM)

Fri, September 18, 2026 at 3:34 PM GMT+3 3 min read

• MORN +0.48%
• IRM +0.30%

Baron Capital, an investment management company, released its Q2 2026 letter for the "Baron Real Estate Income Fund." The Fund gained 12.18% (Institutional Shares) during the quarter, modestly outperforming the MSCI US REIT Index, which increased 11.84%. The letter can be downloaded here. Its long-term performance also remains strong, with Morningstar ranking it the #2 real estate fund since its December 2017 inception. The letter discusses management's current views, portfolio composition, key contributors and detractors, recent activity, and the outlook for real estate and the Fund. Management believes a multi-year recovery in real estate is beginning to emerge, despite elevated interest rates, housing affordability pressures, and AI-related disruption. Its constructive outlook is supported by attractive valuations, accelerating M&A, favorable supply-demand dynamics, healthy balance sheets, improving debt conditions, and increasing recognition of real estate as an AI beneficiary. The Fund remains positioned to benefit from improving growth, rising dividends, and potential valuation normalization. Please review the Fund's top five holdings to gain insights into their key selections for 2026.

In its second-quarter 2026 investor letter, Baron Real Estate Fund highlighted Iron Mountain Incorporated (NYSE:IRM). Iron Mountain Incorporated (NYSE:IRM) is a REIT that provides storage and information management solutions. On September 17, 2026, Iron Mountain Incorporated (NYSE:IRM) closed at $114.00 per share. Over the past month, Iron Mountain Incorporated (NYSE:IRM) declined 6.57% and its shares gained 14.13% over the past 52 weeks. Iron Mountain Incorporated (NYSE:IRM) has a market capitalization of $33.94 billion with a 52-week trading range between $77.77 and $134.68.

Baron Real Estate Fund stated the following regarding Iron Mountain Incorporated (NYSE:IRM) in its Q2 2026 investor letter:

"We are optimistic about the prospects for Iron Mountain Incorporated (NYSE:IRM). The company offers records storage management along with an evolving fast-growing data center segment. We are encouraged by the company's prospects to grow overall cash flow by more than 10% per year over the next several years. Growth is underpinned by predictable and stable growth in its core records management business while outsized growth is driven by its data center business, which has visibility to more than triple operational capacity from today's in-place base."

Iron Mountain Incorporated (NYSE:IRM) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held Iron Mountain Incorporated (NYSE:IRM) at the end of the second quarter which was 40 in the previous quarter. While we acknowledge the potential of Iron Mountain Incorporated (NYSE:IRM) 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 another article, we covered Iron Mountain Incorporated (NYSE:IRM) and highlighted its return to profitability as momentum across its growth businesses gained traction. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.