Here’s Why Springview Capital Management Exited Its Position in Seaport Entertainment (SEG)

Springview Capital Management, an investment management company, released its second-quarter 2025 investor letter. A copy of the same can be downloaded here. Limited partners returned +17.8% in the second quarter, bringing the year-to-date return to +15.7% compared to the S&P 500’s +10.9% return in the quarter and +6.2% in the first half, including dividends. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its second-quarter 2025 investor letter, Springview Capital Management highlighted stocks such as Seaport Entertainment Group Inc. (NYSE:SEG). Seaport Entertainment Group Inc. (NYSE:SEG) owns, develops, and operates a portfolio of entertainment and real estate assets. The one-month return of Seaport Entertainment Group Inc. (NYSE:SEG) was 8.24%, and its shares gained 6.66% of their value over the last 52 weeks. On August 8, 2025, Seaport Entertainment Group Inc. (NYSE:SEG) stock closed at $23.52 per share, with a market capitalization of $298.577 million.

Springview Capital Management stated the following regarding Seaport Entertainment Group Inc. (NYSE:SEG) in its second quarter 2025 investor letter:

“We exited our investment in Seaport Entertainment Group Inc. (NYSE:SEG) during the second quarter. We initiated the position in Q3 2024 at an average cost of approximately $27 per share, including participation in a rights offering. At the time, we saw compelling value in acquiring what amounted to a swath of lower Manhattan real estate for just over $150 million in enterprise value.

Our primary concern, however, was the company’s persistent cash burn, driven largely by underperformance at the Tin Building by Jean-Georges, its flagship food hall in the Seaport District. Over the course of the year, our concerns deepened regarding management’s ability to stabilize cash flow. These worries came to a head in May, when the company reported $37 million in cash outflow for the first quarter alone. Extrapolating that trend, we feared Seaport would soon be forced to raise equity or fire-sell assets—an outcome we were unwilling to risk. We exited the position at just under $19 per share.”

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Seaport Entertainment Group Inc. (NYSE:SEG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 10 hedge fund portfolios held Seaport Entertainment Group Inc. (NYSE:SEG) at the end of the first quarter, which was 13 in the previous quarter. While we acknowledge the risk and potential of Seaport Entertainment Group Inc. (NYSE:SEG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Seaport Entertainment Group Inc. (NYSE:SEG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Seaport Entertainment Group Inc. (NYSE:SEG) and shared top stock picks from Bill Ackman stock portfolio. 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.