Should You Invest in Manchester United (MANU)’s Stock, Instead of Just Being a Fan?

Ariel Investments, an investment management firm, published its “Ariel Fund & Ariel Appreciation Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -0.17% was recorded by the Fund for the third quarter of 2021, compared to the Russell 2500TM Value Index, Russell 2500TM Index, and S&P 500® Index which had a -2.07%, -2.68%, and 0.58% returns respectively for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Ariel Fund & Ariel Appreciation Fund, in its Q3 2021 investor letter, mentioned Manchester United plc (NYSE: MANU) and discussed its stance on the firm. Manchester United plc is a Old Trafford, Stretford-based sports teams and clubs company with a $2.2 billion market capitalization. MANU delivered a -16.25% return since the beginning of the year, while its 12-month returns are down by -15.85%. The stock closed at $14.02 per share on December 15, 2021.

Here is what Ariel Fund & Ariel Appreciation Fund has to say about Manchester United plc  in its Q3 2021 investor letter:

“We also purchased shares of professional football club, Manchester United Plc. (MANU) in those same Funds. The team plays in the English Premier League (EPL), the most watched professional sports league in the world. Unlike most sports franchises, MANU leverages its global brand to drive a larger revenue base, enabling the acquisition of top talent which has proven to drive strong league performance over the long-term. MANU also distributes and broadcasts live football content directly and indirectly through partners; owns and operates Old Trafford Stadium; and also engages in sponsorships, merchandising and product licensing. Pandemic-related revenue pressures and investor concerns surrounding media rights enabled us to build a position at a meaningful discount to our assessment of intrinsic value.”

Based on our calculations, Manchester United plc (NYSE: MANU) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. MANU was in 6 hedge fund portfolios at the end of the third quarter of 2021, compared to 12 funds in the previous quarter. Manchester United plc (NYSE: MANU) delivered a -19.98% return in the past 3 months.

Earlier this year, we also shared another hedge fund’s views on MANU in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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