Six Flags Entertainment Corporation (FUN) Slid on Investors’ Concerns

Broyhill Asset Management, an investment advisor, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Broyhill Partners appreciated 2.8% net of all fees and expenses in the first quarter, surpassing a -1.2% return for the MSCI All Country World Index. Volatility was the dominant theme in the first quarter, particularly among a few US technology companies that have come to influence the performance of passive indices. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Broyhill Asset Management highlighted stocks such as Six Flags Entertainment Corporation (NYSE:FUN). Six Flags Entertainment Corporation (NYSE:FUN) operates amusement resorts consisting of amusement parks, water parks, and resort properties. The one-month return of Six Flags Entertainment Corporation (NYSE:FUN) was -6.26%, and its shares lost 22.73% of their value over the last 52 weeks. On May 30, 2025, Six Flags Entertainment Corporation (NYSE:FUN) stock closed at $33.56 per share with a market capitalization of $3.393 billion.

Broyhill Asset Management stated the following regarding Six Flags Entertainment Corporation (NYSE:FUN) in its Q1 2025 investor letter:

“Shares of Six Flags Entertainment Corporation (NYSE:FUN) declined 26% during the quarter, as investors became increasingly concerned about the potential for reduced discretionary spending amidst slowing economic growth. We think these fears are misplaced, as regional theme park attendance has historically proven remarkably resilient throughout previous recessions. And following its recent combination with Cedar Fair, the combined company has several levers at its disposal to drive operational improvements and optimize its balance sheet.”

People enjoying a sunny day at Knott’s Berry Farm amusement park rides.

Six Flags Entertainment Corporation (NYSE:FUN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Six Flags Entertainment Corporation (NYSE:FUN) at the end of the first quarter, which was 47 in the previous quarter. While we acknowledge the potential of Six Flags Entertainment Corporation (NYSE:FUN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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