Longleaf Partners is Confident About Warner Bros. Discovery (WBD)’s Growth Opportunities

Longleaf Partners, an asset management company, released its “Longleaf Partners Fund” second quarter investor letter. A copy of the same can be downloaded here. The fund declined 15.56% in the second quarter, just ahead of the S&P 500 Index, which dropped 16.10%. Even though the fund outperformed the S&P Index, it lagged the Russell 1000 value index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Longleaf Partners discussed stocks like Warner Bros. Discovery, Inc. (NASDAQ:WBD). Headquartered in New York, New York, Warner Bros. Discovery, Inc. (NASDAQ:WBD) operates as a media company. On August 31, 2022, Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock closed at $13.24 per share. One-month return of Warner Bros. Discovery, Inc. (NASDAQ:WBD) was -20.77% and its shares lost 53.43% of value over the last 52 weeks. Warner Bros. Discovery, Inc. (NASDAQ:WBD) has a market capitalization of $32.141 billion.

Here is what Longleaf Partners specifically said about Warner Bros. Discovery, Inc. (NASDAQ:WBD):

“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – A new purchase within the last year, media conglomerate Warner Bros Discovery’s (WBD) stock price has been materially impacted by a terrible Netflix quarter (that probably is a good sign for WBD long-term) and fears of a downturn impacting advertising revenues and subscribers. While we believe these are valid concerns, media has historically been an attractive industry for our style of investing and media companies have been inflation beneficiaries. While the market is taking a “show me” approach to see how the merger will unfold, we believe the company has multiple levers to grow free cash flow per share. We saw eight different insiders buy shares personally in the quarter, which is an extremely strong vote of confidence from people who have a clear view of the challenges and opportunities facing the company.”

Image by Gerd Altmann from Pixabay

Warner Bros. Discovery, Inc. (NASDAQ:WBD) is not on the list of 30 Most Popular Stocks Among Hedge Funds. Warner Bros. Discovery, Inc. (NASDAQ:WBD) was held by 68 hedge fund portfolios at the end of the second quarter compared to 47 in the previous quarter.

We discussed Warner Bros. Discovery, Inc. (NASDAQ:WBD) in another article and shared Argosy Investors’ views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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