Jefferies Group: “WMG is in a Very Good Position to Benefit from Metaverse Developments”

Jefferies Group, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. In the letter, the fund talked about the Metaverse and discussed some of the key companies involved in this virtual/augmented reality technology. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Jefferies Group, in its Q3 2021 investor letter, mentioned Warner Music Group Corp. (NASDAQ: WMG) and discussed its stance on the firm. Warner Music Group Corp. is a New York, New York-based entertainment company with a $21.5 billion market capitalization. WMG delivered a 13.08% return since the beginning of the year, while its 12-month returns are up by 48.91%. The stock closed at $42.96 per share on November 24, 2021.

Here is what Jefferies  has to say about Warner Music Group Corp. in its Q3 2021 investor letter:

“WMG is actually in a very good position to benefit from Metaverse developments. Music is incredibly important to many of the most popular social platforms and record labels stand to benefit as rightsholders. In addition, the evolution of digital distribution makes it even more critical that you have a strong team helping you maximize the opportunity. Record labels have a key part to play in navigating that landscape, whether it be traditional recording contracts or through the artist services business. In fact, we see music as being a beneficiary of the Metaverse no matter which direction distribution goes, so WMG is a relatively low risk play on the expansion of virtual interactions.

Thus far, WMG has not been shy about experimenting with the virtual format. The company recently partnered with Roblox for a virtual concert that kicked off Twenty One Pilots’ Takeover Tour and signed Ha Jiang, a “virtual idol” that exists exclusively online, to Whet Records. In addition, WMG is invested in companies like Dapper Labs, Wave and Roblox while having a global partnership with Genies, the worlds largest avatar tech company.”

Photo by Denisse Leon on Unsplash

Based on our calculations, Warner Music Group Corp. (NASDAQ: WMG) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. WMG was in 28 hedge fund portfolios at the end of the third quarter of 2021, compared to 29 funds in the previous quarter. Warner Music Group Corp. (NASDAQ: WMG) delivered a 13.47% return in the past 3 months.

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