Third Avenue Management, an investment management firm, published its “Small-Cap Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Third Avenue Small-Cap Value Fund (the “Fund”) rose 5.53% during the fourth quarter of 2021 versus a rise of 4.36% for the Fund’s most relevant benchmark, the Russell 2000 Value Index (the “Index”). In 2021, the Fund was up 25.84%
versus a rise of 28.27% for the Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Third Avenue Management Small-Cap Value Fund, in its Q4 2021 investor letter, mentioned Madison Square Garden Entertainment Corp. (NYSE: MSGE) and discussed its stance on the firm. Madison Square Garden Entertainment Corp. is a United States-based entertainment holding company with a $2.4 billion market capitalization. MSGE delivered a 0.00% return since the beginning of the year, while its 12-month returns are down by -28.87%. The stock closed at $70.34 per share on February 4, 2022.
Here is what Third Avenue Management Small-Cap Value Fund has to say about Madison Square Garden Entertainment Corp. in its Q4 2021 investor letter:
“Trophy Assets (5.7% of assets): The trophy assets are two sports oriented holding companies. The Liberty Braves contains the Atlanta Braves baseball franchise and stadium in addition to the surrounding real estate. Madison Square Garden Entertainment’s primary asset is Madison Square Garden which is the home to the New York Knicks from the National Basketball Association and the New York Rangers from the National Hockey League. Although each entity is multi-faceted, the real estate linked to the respective franchises is protected and highly desirable. The Braves are the primary tenant at Truist Park. As defending World Series champs, Truist Park should attract more fans and have flexibility to increase prices in upcoming seasons. Last season, despite Covid restrictions, the Braves were able to grow revenue per game at double digit rates versus 2019. It’s a testament to the success of the new ballpark and quality of the Braves team. In addition, the area surrounding Truist stadium (The Battery) has turned into a popular entertainment destination for Atlanta residents and visitors.
Madison Square Garden is the highest grossing entertainment venue in the world. Despite poor performance by the Knicks for the past 20 years (!), demand has proven to be inelastic. Likewise, although to a lesser extent, fan support for the Rangers is rabid despite lackluster team results. Madison Square Garden is also a choice venue for a wide range of entertainment activities beyond the Knicks and Rangers. The attractiveness of the venue for entertainers and fans alike provides Madison Square Garden with sustainable pricing power. The same can be said for other venues under the Madison Square Garden umbrella such as Radio City Music Hall, the Chicago Theatre and Beacon Theatre.”
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. MSGE was in 19 hedge fund portfolios at the end of the third quarter of 2021, compared to 19 funds in the previous quarter. Madison Square Garden Entertainment Corp. (NYSE: MSGE) delivered a -11.44% return in the past 3 months.
In December 2021, we also shared another hedge fund’s views on 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.
