Top 5 Stock Picks of Mark Gallogly’s Centerbridge Partners

2. Cedar Fair, L.P. (NYSE:FUN) 

Centerbridge Partners’ Stake Value: $162,509,000
Percentage of Centerbridge Partners’ 13F Portfolio: 10.37%
Number of Hedge Fund Holders: 12

Cedar Fair, L.P. (NYSE:FUN) is a regional amusement park operator. The company’s portfolio has 13 properties, including 11 theme parks, four independently guarded outdoor water parks, resort lodging with more than 2,300 rooms, and more than 600 luxurious RV sites. According to Insider Monkey’s first quarter data, 12 hedge funds were bullish on Cedar Fair, L.P. (NYSE:FUN).

On August 3, Cedar Fair, L.P. (NYSE: FUN) announced its earnings for the second quarter, which included revenue of $509 million, which demonstrates a year-over-year increase of 127%. In addition, EPS was reported to be $0.89, which missed estimates by $0.51.

Subsequently, on August 4, Truist analyst Michael Swartz maintained a ‘Buy’ rating on Cedar Fair, L.P. (NYSE:FUN), while reducing his price target to $58 from $67. The analyst claimed that even though Cedar Fair, L.P. (NYSE: FUN)’s Q2 profitability fell short of projections, the underlying price and visitation information seemed to point to a healthy demand environment.

Centerbridge Partners initially bought Cedar Fair, L.P. (NYSE:FUN) in the third quarter of 2021. The hedge fund boosted its Cedar Fair, L.P. (NYSE:FUN) stake by 34% in the first quarter of 2022, purchasing an additional 742,695 shares. As a result, Cedar Fair, L.P. (NYSE:FUN) accounted for 10.37% of the hedge fund’s equity portfolio value at the end of Q1.