Here’s Why You Can Consider Buying Warner Music Group (WMG) Shares

Cooper Investors, an investment management firm, published its “Cooper Investors Global Equities Fund (Hedged)” fourth quarter 2021 investor letter – a copy of which can be downloaded here. For the 3 months and 12 months to December 31st, the Fund returned +6.0% and +23.6% respectively. This compares to the benchmark which returned +6.6% and +20.2%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Cooper Investors, in its Q4 2021 investor letter, mentioned Warner Music Group Corp. (NASDAQ: WMG) and discussed its stance on the firm. Warner Music Group Corp. is a New York, New York-based entertainment company with a $20.7 billion market capitalization. WMG delivered a -6.74% return since the beginning of the year, while its 12-month returns are up by 15.16%. The stock closed at $40.27 per share on January 14, 2022.

Here is what Cooper Investors has to say about Warner Music Group Corp. in its Q4 2021 investor letter:

“In recent years we have observed a growing market for music rights which represent another way for owners of record labels and music libraries like portfolio holdings Warner Music Group and Sony (via its subsidiary Sony Music, ~25% of our estimated enterprise value) to deploy capital, grow their businesses and create value for shareholders.

In the first few days of 2022 Warner closed a deal to acquire David Bowie’s back catalogue for about US$250m which follows on from Bruce Springsteen’s catalogue sale to Sony for upwards of US$500m and Bob Dylan’s sale to Universal Music for a similar amount.

The trend in demand for music copyrights is clearly strengthening, with competition for these assets coming from traditional music companies (Warner, Sony) as well as specialist investors and private equity…” (Click here to see the full text)

Photo by Caught In Joy on Unsplash

Our calculations show that Warner Music Group Corp. (NASDAQ: WMG) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. WMG was in 28 hedge fund portfolios at the end of the third quarter of 2021, compared to 29 funds in the previous quarter. Warner Music Group Corp. (NASDAQ: WMG) delivered a -14.56% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on WMG in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.