Mittleman Investment Management: “AMC Entertainment (AMC) was Our Only Material Loser in Q4”

Mittleman Investment Management LLC, an investment management firm, published its fourth-quarter 2020 Investor Letter – a copy of which can be downloaded here. A return of 31% was recorded by the fund for the Q4 of 2020, outperforming its S&P 500 benchmark that delivered a 12.1% return. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Mittleman Investment Management, in their Q4 2020 Investor Letter, said that AMC Entertainment Holdings, Inc. (NYSE: AMC) was a detractor for their portfolio in the fourth quarter of 2020. AMC Entertainment Holdings, Inc. is a movie theater chain that currently has a $1.8 billion market cap. For the past 3 months, AMC delivered an impressive 88.22% return and settled at $5.59 per share at the closing of February 12th.

Here is what Mittleman Investment Management has to say about AMC Entertainment Holdings, Inc. in their Q4 2020 investor letter:

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 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.”

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Last December, we published an article telling that  AMC Entertainment Holdings, Inc. (NYSE: AMC) was in 12 hedge fund portfolios. Its all time high statistics is 31. AMC delivered a -21.27% return in the past 12 months.

Our calculations show that AMC Entertainment Holdings, Inc. (NYSE: AMC) does not belong in our list of the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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