Is Madison Square Garden Sports (MSGS) A Great Investment Choice?

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Small-Cap Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. Longleaf Partners Small-Cap Fund added 1.91% in the fourth quarter, roughly in line with the Russell 2000’s 2.14% return. For the year, the Fund returned 11.18%, falling short of the Russell 2000, which returned 14.82%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Longleaf Partners Small-Cap Fund Commentary, in its Q4 2021 investor letter, mentioned Madison Square Garden Sports Corp. (NYSE: MSGS) and discussed its stance on the firm. Madison Square Garden Sports Corp. is a New York, New York-based sports holding company with a $3.9 billion market capitalization. MSGS delivered a -5.91% return since the beginning of the year, while its 12-month returns are down by -5.47%. The stock closed at $163.47 per share on January 21, 2022.

Here is what Longleaf Partners Small-Cap Fund Commentary has to say about Madison Square Garden Sports Corp. in its Q4 2021 investor letter:

“While our largest holdings received at least a little market appreciation, our detractors were unreasonably punished based on headline-level misunderstandings. At MSG Sports (MSGS), the Knicks and James Dolan stir strong emotions among finance people in New York, but the fact remains that the Dolan family has made multiple shareholderfriendly moves over the years (which we benefited from as holders of the original incarnation of MSG 10 years ago in the Small-Cap Fund), and we believe that more could be coming for MSGS in the near future. In the meantime, the teams’ ups and downs and the lack of any additional news will let the market paint a short-term focused picture. Our ultimate comfort and patience rest in owning the Knicks and the Rangers at a combined enterprise value of $4.8 billion for both. The NBA and NHL comparables, Forbes valuations, and Sportico valuations are all much higher than that for these two teams.”

Our calculations show that Madison Square Garden Sports Corp. (NYSE: MSGS) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. MSGS was in 35 hedge fund portfolios at the end of the third quarter of 2021, compared to 37 funds in the previous quarter. Madison Square Garden Sports Corp. (NYSE: MSGS) delivered a -11.54% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on MSGS 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.