Is Formula One (FWONK) a Smart Investment Choice?

East 72, an investment management firm, published its third-quarter 2022 investor letter – a copy of which can be downloaded here.  A quarterly gross portfolio return of -5.7% was recorded by the fund for the third quarter of 2022. After a stunning 8.9% rally in July, the S&P500 saw declines in both August (4.2%) and September (9.3%) to see the key global index some 5.3% lower at quarter-end against June 2022. The index is now back to mid-November 2020 levels. . Try to spare some time to check the fund’s top 5 holdings for you to have an idea about their best stock picks this 2022.

In its Q3 2022 investor letter, East 72 Fund mentioned Formula One Group (NASDAQ:FWONK) and explained its insights for the company. Founded in 1950, Formula One Group (NASDAQ:FWONK) is a London, United Kingdom-based motorsport company with a $14.4 billion market capitalization. Formula One Group (NASDAQ:FWONK) delivered a -0.70% return since the beginning of the year, while its 12-month returns are up by 18.27%. The stock closed at $62.80 per share on October 07, 2022.

Here is what East 72 Fund has to say about Formula One Group (NASDAQ:FWONK) in its Q3 2022 investor letter:

“There are two listed SPORTS, both of which have suffered pressures in this respect over past years: World Wrestling Entertainment (WWE) and Formula 1 motor racing (via Liberty Formula 1 tracker stock: FWONA/FWONB/FWONK). We have owned both in the past. A very brief analysis of each is instructive in understanding where and why we do have exposures.

Formula 1 is now virtually unchallenged in its dominance of high end motor sport – the biggest circus on earth. It has a monopoly from FIA on the “World Championship” through to end-2110 Having morphed from a series of races controlled by the teams, then the “legendary” entrepreneur, Bernie Ecclestone, the organisation was acquired by Liberty Media in late 2016. This acquisition has coincided with a rebirth in the sport, with the 7th and 8th “Concorde” Agreements cementing in place the incentives for the major teams to stay in the sport and not attempt a breakaway series…” (Click here to see the full text)

Race, Formula One, F1, Car, Cars

Photo by shen liu on Unsplash

Our calculations show that Formula One Group (NASDAQ:FWONK) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Formula One Group (NASDAQ:FWONK) was in 46 hedge fund portfolios at the end of the second quarter of 2022, compared to 43 funds in the previous quarter. Formula One Group (NASDAQ:FWONK) delivered a 2.87% return in the past 3 months.

In September 2022, we also shared another hedge fund’s views on Formula One Group (NASDAQ:FWONK) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q3 page.


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