Choice Equities Capital Management, a hedge fund manager, released its third-quarter 2023 investor letter recently. You can view it here. In the third quarter, the fund generated -14.6% on a net basis which brought the year-to-date net performance to -6.2%. This compares to Russell 2000’s -5.1% loss for the quarter and +2.5% gain year-to-date. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Choice Equities highlighted stocks like Magnite, Inc. (NASDAQ:MGNI) in the third quarter 2023 investor letter. Headquartered in New York, New York, Magnite, Inc. (NASDAQ:MGNI) is an independent sell-side advertising platform. On November 6, 2023, Magnite, Inc. (NASDAQ:MGNI) stock closed at $7.21 per share. One-month return of Magnite, Inc. (NASDAQ:MGNI) was -3.74%, and its shares gained 15.92% of their value over the last 52 weeks. Magnite, Inc. (NASDAQ:MGNI) has a market capitalization of $987.474 million.
Choice Equities made the following comment about Magnite, Inc. (NASDAQ:MGNI) in its Q3 2023 investor letter:
“Holdings in our portfolio moved lower along with the downward trend of the market. By and large, our largest positions were the largest drivers of performance for the quarter, with the noted exception of Magnite, Inc. (NASDAQ:MGNI), whose shares fell significantly late in the quarter.
In the case of MGNI, and to a lesser degree, Stagwell (STGW), although both companies offer double digit free cash flow yields and attractive growth prospects and both will benefit from a pickup in advertising spend, both remain out of favor until such a turn begins to materialize. Weakness in spending, particularly in Magnite’s CTV vertical, appeared midsummer, and has since persisted. This delay in projected customer spending produced a shortfall in revenues and led Magnite’s management team to lower their full year EBITDA forecast by ~5-10%. That a lowered outlook would produce a decline in shares is not terribly surprising, but the stock reaction was unusually severe. Looking forward, the spending effects should reverse with a political spending cycle upcoming and the company remains favorably positioned competitively.”
A close-up of a busy web page, representing the creative platform solutions of the digital advertising solutions company.
Magnite, Inc. (NASDAQ:MGNI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Magnite, Inc. (NASDAQ:MGNI) at the end of second quarter which was 14 in the previous quarter.
We discussed Magnite, Inc. (NASDAQ:MGNI) in another article and shared Madison Small Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
