Longleaf Partners’ Major Detractor: MGM Resorts International (MGM)

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 MGM Resorts International (NYSE:MGM). Headquartered in Las Vegas, Nevada, MGM Resorts International (NYSE:MGM) operates in the entertainment and hospitality industry. On August 31, 2022, MGM Resorts International (NYSE:MGM) stock closed at $32.64 per share. One-month return of MGM Resorts International (NYSE:MGM) was -7.93% and its shares lost 23.31% of value over the last 52 weeks. MGM Resorts International (NYSE:MGM) has a market capitalization of $12.831 billion.

Here is what Longleaf Partners specifically said about MGM Resorts International (NYSE:MGM):

MGM Resorts International (NYSE:MGM) – The casino and online gaming company declined in the quarter, as potential travel cutbacks in the face of increased fuel prices and recession fears weighed on the stock. Additionally, the broader online gaming industry has fallen out of favor, but BetMGM’s online gaming business is continuing to grow regardless of the environment. In a strong vote of confidence, MGM and IAC together bought $405 million worth of MGM shares from (still large) shareholder Corvex Management in February, and insiders have been adding meaningfully this year. The company is also one of our largest share repurchasers.”

MGM Resorts International (NYSE:MGM) is not on the list of 30 Most Popular Stocks Among Hedge Funds. MGM Resorts International (NYSE:MGM) was held by 46 hedge fund portfolios at the end of the second quarter compared to 59 in the previous quarter.

We discussed MGM Resorts International (NYSE:MGM) in another article and shared the list of stocks that can rebound in 2023. 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.