Is it the Best Time to Invest in Madison Square Garden Entertainment Corp. (MSGE)?
Ariel Investments, an investment management company, released its “Ariel Small/Mid Cap Value Fund” third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the fund fell -7.16% gross of fees, underperforming the Russell 2500 Value Index, which returned -4.50 %, and the Russell 2500 Index, which returned -2.82%. All the major indices closed at a loss in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Ariel Investment highlighted stocks like Madison Square Garden Entertainment Corp. (NYSE:MSGE) in the Q3 2022 investor letter. Headquartered in New York, New York, Madison Square Garden Entertainment Corp. (NYSE:MSGE) is an entertainment company. On December 2, 2022, Madison Square Garden Entertainment Corp. (NYSE:MSGE) stock closed at $49.31 per share. One-month return of Madison Square Garden Entertainment Corp. (NYSE:MSGE) was 7.37%, and its shares lost 25.52% of their value over the last 52 weeks. Madison Square Garden Entertainment Corp. (NYSE:MSGE) has a market capitalization of $1.704 billion.
Ariel Investment made the following comment about Madison Square Garden Entertainment Corp. (NYSE:MSGE) in its Q3 2022 investor letter:
"Entertainment holding company Madison Square Garden Entertainment Corp. (NYSE:MSGE) weighed on relative results in the period. The company announced a potential spin-off of its live entertainment and MSG Networks businesses from TAO and MSG Sphere, its coming Las Vegas property. Management also noted a high single-digit increase in the capital budget for Sphere. In our view, this divestiture would address different investor bases as MSG Sphere and TAO Company represent higher growth initiatives, while the remaining assets are generally slower growth, albeit stable cash flow generators. At the consolidated level, we continue to have conviction in MSGE’s improving long-term fundamental outlook. Management is projecting a record year in the booking business and sees momentum at TAO. We also expect shares to benefit from normalized 2022-23 NBA and NHL seasons, as well as a full-year of Online Sports Betting now live in New York. Looking ahead, we remain bullish on digital access to sports, as well as the opportunity at the Sphere. In our view, the underlying value of MSGE’s physical assets coupled with our conviction around management’s expertise make this an attractive opportunity."
Photo by David Vives on Unsplash
Madison Square Garden Entertainment Corp. (NYSE:MSGE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Madison Square Garden Entertainment Corp. (NYSE:MSGE) at the end of the third quarter, which was 11 in the previous quarter.
We discussed Madison Square Garden Entertainment Corp. (NYSE:MSGE) in another article and shared Black Bear Value Partners' views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.
