Ariel Investments, an investment management firm, has released its third quarter investor letter for its Ariel Small/Mid Cap Value Fund. A copy of the same can be downloaded here. In the third quarter, the fund fell -7.16% in total fees, with the Russell 2500 Value Index returning below -4.50% and the Russell 2500 Index returning below -2.82%. All major indices closed in losses for the quarter. Plus, check out the fund’s top 5 holdings to discover our best picks for 2022.
Ariel Investment highlighted stocks such as Madison Square Garden Entertainment Corp. (NYSE:MSGE) in its third quarter 2022 investor letter. Headquartered in New York, New York, Madison Square Garden Entertainment Corporation (NYSE:MSGE) is an entertainment company. On December 2, 2022, Madison Square Garden Entertainment Corporation (NYSE: MSGE) stock closed at $49.31 per share. Madison Square Garden Entertainment Corp.’s (NYSE:MSGE) one-month return was his 7.37%, and the stock has lost his 25.52% of its value over the past 52 weeks. Madison Square Garden Entertainment Corp. (NYSE:MSGE) has a market capitalization of $1.74 billion.
Ariel Investment made the following comments about Madison Square Garden Entertainment Corp. (NYSE:MSGE) in its Q3 2022 investor letter:
“Entertainment Holding Company” Madison Square Garden Entertainment Corporation (NYSE:MSGE) weighed relative results over the same period. The company has announced the possibility of spinning off live entertainment and his MSG Networks business from his TAO and his MSG Sphere, which will be built in Las Vegas. Management also noted that Sphere’s capital budget increased by high single digits. In our view, MSG Sphere and TAO Company represent higher growth initiatives, so this sale addresses a diverse investor base, while the remaining assets are stable cash flow generators. Growth is generally low. At the consolidated level, we remain confident in the improvement of MSGE’s long-term fundamental prospects. Management is predicting a record year for the booking business, and we’re seeing momentum at TAO. Regularized, he is also expected to benefit from his 2022-23 NBA and NHL seasons, as well as the year-round online sports betting currently taking place in New York. Looking ahead, we remain bullish on digital access to sports and opportunities at Sphere. In our view, the potential value of MSGE’s physical assets, coupled with management’s confidence in its expertise, make this an attractive opportunity. “
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Madison Square Garden Entertainment Corp. (NYSE:MSGE) isn’t on the list of the 30 most popular hedge funds. According to our database, 17 hedge fund portfolios held Madison Square Garden Entertainment (NYSE:MSGE) at the end of the third quarter, compared with 11 last quarter.
We covered Madison Square Garden Entertainment Corporation (NYSE:MSGE) in a separate article, sharing Black Bear Value Partners’ perspective on the company. Additionally, for investor letters from hedge funds and other key investors, please visit our Hedge Fund Investor Letters for Q3 2022 page.
Disclosure: None. This article was originally published on Insider Monkey.