Ariel Investments, an investment management company, released its “Ariel Fund” third-quarter 2023 investor letter. A copy of the same can be downloaded here. The third quarter saw losses in the U.S. stock market due to concerns about a government shutdown, autoworker strikes, rising oil prices, and the possibility that interest rates might stay higher for longer. In the third quarter, Ariel fund declined -7.15% underperforming both the Russell 2500 Value Index and the Russell 2500 Index, which returned -3.66% and -4.78%, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Fund highlighted stocks like Sphere Entertainment Co. (NYSE:SPHR) in the third quarter 2023 investor letter. Headquartered in New York, New York, Sphere Entertainment Co. (NYSE:SPHR) engages in live entertainment and media services. The company formerly known as Madison Square Garden Entertainment Corp. changed its name to Sphere Entertainment Co. (NYSE:SPHR) in April 2023. On November 28, 2023, Sphere Entertainment Co. (NYSE:SPHR) stock closed at $34.05 per share. One-month return of Sphere Entertainment Co. (NYSE:SPHR) was 0.50%, and its shares gained 53.26% of their value over the last 52 weeks. Sphere Entertainment Co. (NYSE:SPHR) has a market capitalization of $1.196 billion.
Ariel Fund made the following comment about Sphere Entertainment Co. (NYSE:SPHR) in its Q3 2023 investor letter:
“Live entertainment, media and technology company, Sphere Entertainment Co. (NYSE:SPHR) was the top contributor during the quarter. Shares jumped following news the Las Vegas venue was on track to open in late September and costs were in-line with expectations. Additionally, the company delivered a profitable fourth quarter relative to the loss posted a year ago. While the Sphere venue will take some time to reach its full potential, the company is planning to have events 365 days a year. In addition to hosting concert residencies, marquee sporting and corporate events, The Sphere Experience will debut in October, consisting of a series of exhibits chronicling technology’s impact on the development of human potential. Management also believes there is a significant opportunity for advertising and sponsorship on the Exosphere (the Sphere’s exterior) as well as licensing interior VIP hospitality suites. Meanwhile, U2 opened to great fanfare on September 29th – sending shares even higher into the month of October. In our view, the Sphere’s new experiential immersive venue and the company’s two regional sports and entertainment networks present a long-term opportunity, which remains meaningfully underappreciated at current trading levels.”
Stagehands setting up the equipment for a live entertainment event.
Sphere Entertainment Co. (NYSE:SPHR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Sphere Entertainment Co. (NYSE:SPHR) at the end of third quarter which was 36 in the previous quarter.
We discussed Sphere Entertainment Co. (NYSE:SPHR) in another article and shared Third Avenue Small-Cap Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 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.
