Ariel Investments, an investment management firm, published its “Ariel Focus Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. Ariel Focus Fund gained +4.95% in the fourth quarter trailing the Russell 1000 Value Index which increased +7.77% and the S&P 500 Index which gained +11.03%. For the full year 2021, Ariel Focus Fund posted a strong absolute return of +21.15% but trailed both the Russell 1000 Value Index and the S&P 500 which rose +25.16% and +28.71%, respectively Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Ariel Investments, in its Q4 2021 investor letter, mentioned Madison Square Garden Entertainment Corp (NYSE:MSGE) and discussed its stance on the firm. Founded in 2020, Madison Square Garden Entertainment Corp (NYSE:MSGE) is a United States-based entertainment holding company with a $2.7 billion market capitalization and is currently spearheaded by its CEO, James Dolan. Madison Square Garden Entertainment Corp (NYSE:MSGE) delivered a 13.43% return since the beginning of the year, while its 12-month returns are down by -15.88%. The stock closed at $79.79 per share on March 21, 2022.
Here is what Ariel Investments has to say about Madison Square Garden Entertainment Corp (NYSE:MSGE) in its Q4 2021 investor letter:
“Madison Square Garden Entertainment Corporation (MSGE) was also a detractor, falling -33.04% for the year and -3.21% for the fourth quarter. We think high quality real estate like the company’s New York sports arena and its new Sphere entertainment center in Las Vegas will hold value in an inflationary environment. The market has instead focused on MSGE’s ill-timed acquisition of MSG Networks (MSGN), a regional sports network, and punished the stock. While we were also disappointed with the acquisition, we view the markets’ negative reaction as excessive. MSGE is trading at a significant discount to our calculation of its intrinsic value, even if we assign zero value to MSGN, which we do not.”
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Our calculations show that Madison Square Garden Entertainment Corp (NYSE:MSGE) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Madison Square Garden Entertainment Corp (NYSE:MSGE) was in 17 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 19 funds in the previous quarter. Madison Square Garden Entertainment Corp (NYSE:MSGE) delivered a 16.65% return in the past 3 months.
In February 2022, we also shared another hedge fund’s views on Madison Square Garden Entertainment Corp (NYSE:MSGE) in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
