Ariel Investments, an investment management company, released its “Ariel Small Cap Value Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. Global markets continued their upward trend in the second quarter, exceeding expectations. Meanwhile US economy continues to show signs of economic slowdown as tighter credit conditions weigh on consumers and business confidence. Against this backdrop, the fund advanced +5.19% gross of fees (+4.93% net of fees) in the second quarter, ahead of the Russell 2000 Value Index’s +3.18% gain and relatively in line with the Russell 2000 Index’s +5.21% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Small Cap Value Strategy highlighted stocks like Madison Square Garden Entertainment Corp. (NYSE:MSGE) in the second quarter 2023 investor letter. Headquartered in New York, New York, Madison Square Garden Entertainment Corp. (NYSE:MSGE) engages in the live entertainment business. On September 6, 2023, Madison Square Garden Entertainment Corp. (NYSE:MSGE) stock closed at $32.40 per share. One-month return of Madison Square Garden Entertainment Corp. (NYSE:MSGE) was 0.22%, and its shares lost 11.79% of their value over the last three months. Madison Square Garden Entertainment Corp. (NYSE:MSGE) has a market capitalization of $1.654 billion.
Ariel Small Cap Value Strategy made the following comment about Madison Square Garden Entertainment Corp. (NYSE:MSGE) in its Q2 2023 investor letter:
“Additionally, live entertainment business, Madison Square Garden Entertainment Corp. (NYSE:MSGE) completed its spin-off from Sphere Entertainment Co. (SPHR) in the quarter. The company’s portfolio includes a collection of venues, such as New York’s Madison Square Garden, Radio City Music Hall, Beacon Theatre and The Chicago Theater. MSGE also features the original production of the Christmas Spectacular starring the Radio City Rockettes. In our view, MSGE’s assets are stable cash flow generators and should enable deleveraging. At current valuation levels, the company is trading at an attractive 40% discount to our estimate of private market value.”
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Madison Square Garden Entertainment Corp. (NYSE:MSGE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held Madison Square Garden Entertainment Corp. (NYSE:MSGE) at the end of second quarter which was 19 in the previous quarter.
We discussed Madison Square Garden Entertainment Corp. (NYSE:MSGE) in another article and shared Third Avenue Small-Cap Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
