5 Stocks to Buy According to Mark T. Gallogly’s Centerbridge Partners

3. Cedar Fair, L.P. (NYSE:FUN)

Centerbridge Partners’ Stake Value: $130,215,000
Percentage of Centerbridge Partners’ 13F Portfolio: 11.51%
Number of Hedge Fund Holders: 12

Cedar Fair, L.P. (NYSE:FUN) manages hotels, amusement parks, and indoor and outdoor water parks. Cedar Fair, L.P. (NYSE:FUN) owns and operates 13 facilities, including 11 theme parks, four independently guarded outdoor water parks, resort lodging with about 2,300 rooms, and more than 600 luxurious RV sites.

On November 2, Cedar Fair, L.P. (NYSE:FUN) published earnings for the third quarter of 2022, announcing earnings per share of $5.86, beating estimates by $2.00. In addition, the $362 million adjusted EBITDA for the period was up $29 million from the third quarter of 2021.

On November 3, B. Riley analyst Eric Wold maintained a ‘Buy’ recommendation on the shares while lowering his price objective for Cedar Fair, L.P. (NYSE:FUN) from $68 to $58. Wold advised investors in a research note that decreased attendance and larger post-pandemic labour limitations, which have not yet been fully leveraged, were the primary causes of Cedar Fair, L.P. (NYSE:FUN)’s adjusted EBITDA coming in severely below projections.

According to Insider Monkey’s Q2 data, 12 hedge funds were bullish on Cedar Fair, L.P. (NYSE:FUN), compared to the same number of funds in the earlier quarter. Centerbridge Partners held 2.97 million shares of Cedar Fair, L.P. (NYSE:FUN) as of the end of the second quarter of 2022, which are worth $130.22 million and represented 11.51% of its portfolio. It is the biggest stakeholder of the company.