Cathie Wood’s Latest Portfolio: 5 New Stock Picks

4. Endeavor Group Holdings, Inc. (NYSE:EDR)

ARK Investment Management’s Stake Value: $15.45 million

Percentage of ARK Investment Management’s 13F Portfolio: 0.04%

Number of Hedge Fund Holders: 20

Endeavor Group Holdings, Inc. (NYSE:EDR) is a media, sports, and entertainment company that owns the rights to popular sports franchise UFC (Ultimate Fighting Championship), Pro Bull Riders, New York Fashion Week, and the Miami Open, along with other events.

Cathie Wood added Endeavor Group Holdings, Inc. (NYSE:EDR) to her portfolio in the fourth quarter, with approximately 443,000 shares valued at $15.45 million. With roughly 91 million shares worth $3.2 billion, Silver Lake Partners is the leading shareholder of Endeavor Group Holdings, Inc. (NYSE:EDR) at the end of the fourth quarter.

20 hedge funds were long Endeavor Group Holdings, Inc. (NYSE:EDR) at the close of the third quarter, with combined holdings worth $3.93 billion.

On December 15, Morgan Stanley analyst Benjamin Swinburne upgraded Endeavor Group Holdings, Inc. (NYSE:EDR) to ‘Overweight’ from ‘Equal Weight’, increasing the price target to $40 from $33. The analyst sees media’s “content spending surge” benefit companies such as Endeavor Group Holdings, Inc. (NYSE:EDR) which hold rights to exclusive content in entertainment and sports, especially as 70% of the company’s net operating income comes from UFC and its high-powered talent agency. As for the broader ‘media/entertainment’ sector, Swinburne sees growth in streaming, advertising and live entertainment leading to strong revenue growth in 2022.

ClearBridge Investments, an investment firm, talked about Endeavor Group Holdings, Inc. (NYSE:EDR) in its Q2 2021 investor letter. Here’s what the fund said:

“In addition to these disruptors, we added exposure in evolving opportunities through the IPO of Endeavor Group. Endeavor owns sports leagues like UFC and Pro Bull Riders which should benefit from the return of live events as well as leading sports agency IMG and its IMG Academy training franchise. Streaming companies are hungry for content and rights prices for programming owned by Endeavor are rising. Endeavor, as a representative to many of the world’s most well-known athletes, should also benefit from soaring sports salaries.”