Mark Cuban Stock Portfolio: 5 Stocks To Consider

2. AMC Entertainment Holdings, Inc. (NYSE:AMC)

Number of Hedge Fund Holders: 21

AMC Entertainment Holdings, Inc. (NYSE:AMC) is a Kansas-based movie theatre chain. The company has a market cap of more than $20 billion and posted $1.2 billion in revenue last year, down from $5.7 billion in 2019. The dramatic drop was due largely to the closing of theatres around the world as a COVID-19 precaution. The rise of the streaming industry has hit the business of the firm hard and most analysts are not constructive on the stock. 

However, as retail investors buy up AMC Entertainment Holdings, Inc. (NYSE:AMC) stock to spoil short-selling attempts of hedge funds – Cuban says his son also invested in the company – the firm has had a new lease of life, investing in several new endeavors designed to bring back cinema audiences. 

At the end of the second quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $404 million in AMC Entertainment Holdings, Inc. (NYSE:AMC), up from 19 in the preceding quarter worth $34 million. 

In its Q4 2020 investor letter, Mittleman Investment Management LLC, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE:AMC) was one of them. Here is what the fund said:

“AMC Entertainment (AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”