Gannett (GCI) Showed Recovery from Q1 Lows

Miller Value Partners, an investment management company, released its “Deep Value Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The first half of the year mirrored 2020, with tariff and Covid fears driving the VIX Index over 50 and the U.S. Economic Policy Uncertainty Index reaching an all-time high. In March 2025, the Economic Uncertainty Index peaked at 725, over 50% higher than in 2020. By April 8th, equity markets hit bottom and began recovering as both the Economic Policy Uncertainty and VIX Index started to decline. In the quarter, the Deep Value strategy had a -0.95% drawdown compared to +3.02% return for the S&P 1500 Value Index and +2.52% return for the S&P 600 Value Index. Year-to-date, the strategy’s net returns are -13.63% vs +2.81% and -7.65%, respectively, for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Miller Value Deep Value Strategy highlighted stocks such as Gannett Co., Inc. (NYSE:GCI). Gannett Co., Inc. (NYSE:GCI) is a US-based media and marketing solutions company. The one-month return of Gannett Co., Inc. (NYSE:GCI) was 3.33%, and its shares lost 6.28% of their value over the last 52 weeks. On August 7, 2025, Gannett Co., Inc. (NYSE:GCI) stock closed at $4.03 per share, with a market capitalization of $590.866 million.

Miller Value Deep Value Select Strategy stated the following regarding Gannett Co., Inc. (NYSE:GCI) in its second quarter 2025 investor letter:

“During the quarter, our largest contributor was Gannett Co., Inc. (NYSE:GCI) up 24%, recovering a portion of its first quarter drawdown. Gannett remains significantly mispriced in our opinion at only .25x revenue and >50% normalized free cash flow yield. New York Times (NYT), which went through a similar digital transformation ten years ago, has a much higher valuation level, with a price-to-sales of 3x and Enterprise Value to EBITDA (EV/EBITDA) greater than 15x.”

In another article, we covered Gannett Co., Inc. (NYSE:GCI) and shared the list of best American penny stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 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.