Cinemark Holdings (CNK), A Top Detractor in Bernzott Capital’s Portfolio

Bernzott Capital Advisors, an investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 24.41% was recorded by the fund in the fourth quarter of 2020, below its  R2000V and R2500V benchmarks that delivered a 33.36% and 28.51% return respectively in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Bernzott Capital Advisors, in their Q4 2020 investor letter, mentioned Cinemark Holdings, Inc. (NYSE: CNK) and emphasized their views on the company. Cinemark Holdings, Inc. is a Plano, Texas-based movie theater chain that currently has a $2.5 billion market capitalization. Since the beginning of the year, CNK delivered a 19.01% return, extending its 12-month gains to 78.16%. As of March 23, 2021, the stock closed at $20.72 per share.

Here is what Bernzott Capital Advisors has to say about Cinemark Holdings, Inc. in their Q4 2020 investor letter:

“Cinemark (CNK): As discussed in our 3Q commentary, Cinemark was sold in early 2Q as social distancing and potentially enduring changes to content distribution (e.g. collapsing theatrical windows and expanding streaming distribution) significantly clouded the outlook for this movie theater operator’s earnings.”

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Our calculations show that Cinemark Holdings, Inc. (NYSE: CNK) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Cinemark Holdings, Inc. was in 26 hedge fund portfolios, compared to 25 funds in the third quarter. CNK delivered a 24.97% return in the past 3 months.