Is it Still Safe to Invest in Empire State Realty (ESRT)?

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Small-Cap Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. Longleaf Partners Small-Cap Fund declined 15.66% in the second quarter, outperforming the Russell 2000 Index, which declined 17.20%, and roughly in line with the Russell 2000 Value. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Longleaf Partners Small-Cap Fund mentioned Empire State Realty Trust, Inc. (NYSE:ESRT) and explained its insights for the company. Founded in 2013, Empire State Realty Trust, Inc. (NYSE:ESRT) is a US-based real estate investment trust company with a $2.06 billion market capitalization. Empire State Realty Trust, Inc. (NYSE:ESRT) delivered a -17.87% return since the beginning of the year, while its 12-month returns are down by -25.71%. The stock closed at $7.31 per share on September 20, 2022.

 Here is what Longleaf Partners Small-Cap Fund has to say about Empire State Realty Trust, Inc. (NYSE:ESRT) in its Q2 2022 investor letter:

Empire State Realty – New York commercial real estate and tourism company Empire State Realty Trust (NYSE:ESRT) also declined with real estate broadly, even though it is not a direct pure play on commercial real estate, given its Observatory business, whose economics are more similar to a Disney World-type theme park. The Observatory will continue to come back as post-COVID travel resumes. CEO Tony Malkin and team are focused on driving value realization by monetizing assets and continuing the share repurchase program.”



Our calculations show that Empire State Realty Trust, Inc. (NYSE:ESRT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Empire State Realty Trust, Inc. (NYSE:ESRT) was in 11 hedge fund portfolios at the end of the second quarter of 2022, compared to 20 funds in the previous quarter. Empire State Realty Trust, Inc. (NYSE:ESRT) delivered a 5.03% return in the past 3 months.

Last year, we also shared Longleaf Partners Fund’s views on Empire State Realty Trust, Inc. (NYSE:ESRT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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