L1 Capital Believes News Corp. (NWS)’s Assets are Materially Under-Valued

L1 Capital, an investment management company, released its “L1 Long Short Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund outperformed the S&P ASX200 AI benchmark and returned -10.4% (net) in the second quarter. Global markets fell sharply over concerns of recession during the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

L1 Capital discussed stocks like News Corporation (NASDAQ:NWS) in the second quarter investor letter. Headquartered in New York, New York, News Corporation (NASDAQ:NWS) is a media and information company. On September 20, 2022, News Corporation (NASDAQ:NWS) stock closed at $16.86 per share. One-month return of News Corporation (NASDAQ:NWS) was -5.39%, and its shares lost 25.17% of their value over the last 52 weeks. News Corporation (NASDAQ:NWS) has a market capitalization of $12.823 billion.

Here is what L1 Capital specifically said about News Corporation (NASDAQ:NWS)  in its Q2 2022 investor letter:

“News Corporation (NASDAQ:NWS) (Long -26%) shares fell over the quarter despite reporting third quarter results in line with consensus expectations. The decline was primarily driven by a softening in investor sentiment towards News Corp’s Digital Real Estate assets against a backdrop of rising interest rates in both Australia and the U.S., with REA Group shares down 17% during the quarter. While concerns over property market drivers are likely to continue in the near term, we see both REA Group and Move as being well positioned to structurally improve their businesses through this period. We continue to believe the News Corp assets are materially under-valued and remain supportive of ongoing initiatives to unlock value across the Group.”

Daily newspaper economy stock market chart

News Corporation (NASDAQ:NWS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held News Corporation (NASDAQ:NWS) at the end of the second quarter which was 15 in the previous quarter.

We discussed News Corporation (NASDAQ:NWS) in another article and shared the list of stock picks of Ben Gordon’s Blue Grotto Capital. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

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