Is it Wise to Keep on Holding Your AMC Shares?

Bronte Capital, an investment management firm, published its “Amalthea Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. Over the quarter the fund fell 5.97% whereas the globally diverse ACWI (in $A) dropped by 12.08%. The results are better than the market but are nonetheless unsatisfactory. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Bronte Capital Amalthea Fund mentioned AMC Entertainment Holdings, Inc. (NYSE:AMC) and explained its insights into the company. Founded in 1920, AMC Entertainment Holdings, Inc. (NYSE:AMC)  is a Leawood, Kansas-based theatrical exhibition company with an $8.4 billion market capitalization. AMC Entertainment Holdings, Inc. (NYSE:AMC)  delivered a -39.26% return since the beginning of the year, while its 12-month returns are up by 62.60%. The stock closed at $16.52 per share on April 22, 2022.

Here is what Bronte Capital Amalthea Fund has to say about AMC Entertainment Holdings, Inc. (NYSE:AMC) in its Q1 2022 investor letter:

“We are short, in small quantity, almost all the meme stocks. The aggregate “meme stock” position is a few percent, though no individual position is large. We will not name any of these positions other than AMC and Gamestop, the two most iconic meme stocks and the objects of the largest short squeezes in February 2020. Note the positions are small, but they are indicative of what is going on. AMC is an over-levered chain of movie theatres in America with (broadly speaking) slightly less attendance every year. Both these companies raised enough money that bankruptcy is not an immediately likely outcome. (Both would have gone bankrupt except for the willingness of largely retail investors to provide them with much more cash.) Both have bad financial results.”

Our calculations show that AMC Entertainment Holdings, Inc. (NYSE:AMC) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. AMC Entertainment Holdings, Inc. (NYSE:AMC) was in 17 hedge fund portfolios at the end of the fourth quarter of 2021. AMC Entertainment Holdings, Inc. (NYSE:AMC) delivered a -8.07% return in the past 3 months.

In November 2021, we also shared Bronte Capital’s third-quarter 2021 views on AMC Entertainment Holdings, Inc. (NYSE:AMC) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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