Broyhill Asset Management, an investment management firm, published its fourth-quarter 2021 investor letter – a copy of which can be downloaded here. For the full year ending December 31, 2021, Broyhill generated low-to-mid-twenties returns on equities. Overall performance varied depending on individual account asset allocations, legacy positions, and capital flows. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Broyhill Asset Management, in its Q4 2021 investor letter, mentioned Madison Square Garden Entertainment Corp. (NYSE: MSGE) and discussed its stance on the firm. Madison Square Garden Entertainment Corp. is a United States-based entertainment holding company with a $2.7 billion market capitalization. MSGE delivered a 12.31% return since the beginning of the year, while its 12-month returns are down by -17.36%. The stock closed at $79.00 per share on February 19, 2022.
Here is what Broyhill Asset Management has to say about Madison Square Garden Entertainment Corp. in its Q4 2021 investor letter:
“Our investment in Madison Square Garden made the list of top detractors again as limited liquidity and limited analyst coverage exaggerated moves in the stock despite a dearth of new information. Investors remain concerned that management’s recent acquisition of regional sports networks has diluted the company as a pure live entertainment and re-opening play.
While we expect the stock to be a major beneficiary of continued economic reopening, longer term, we see an iconic brand with irreplaceable assets, trading far below private market value. At recent lows, we estimate the stock was trading at a discount to the value of its real estate.
And just in case our large investments in tobacco weren’t enough to scare the ESG crowd away, we think MSGE is well positioned to capitalize on a major opportunity in sports betting, as New York has already become the largest sports betting market in America, bringing in $1.6 billion since its launch in January.”
Our calculations show that Madison Square Garden Entertainment Corp. (NYSE: MSGE) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. MSGE was in 17 hedge fund portfolios at the end of the third quarter of 2021, compared to 19 funds in the previous quarter. Madison Square Garden Entertainment Corp. (NYSE: MSGE) delivered a 16.13% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on MSGE 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.
