Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” first quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was 11.67% up in the first quarter, compared to S&P’s return of 7.50% and Russell 1000 Value’s 1.01% return. The largest performance drivers of the fund in the quarter were the largest detractors from the prior years. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Longleaf Partners Fund highlighted stocks like Warner Bros. Discovery, Inc. (NASDAQ:WBD) in the first quarter 2023 investor letter. Headquartered in New York, Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media and entertainment company. On April 25, 2023, Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock closed at $12.81 per share. One-month return of Warner Bros. Discovery, Inc. (NASDAQ:WBD) was -12.62%, and its shares lost 31.97% of their value over the last 52 weeks. Warner Bros. Discovery, Inc. (NASDAQ:WBD) has a market capitalization of $31.2 billion.
Longleaf Partners Fund made the following comment about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q1 2023 investor letter:
“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate Warner Bros Discovery (WBD) was the top contributor in the quarter. WBD was a top detractor last year in the face of concerns over management’s ability to effectively merge two businesses with different cultures, high leverage and exposure to cord cutting. In 2023, a solid plan is emerging for the integration of the businesses. This management team has a strong track record of integrating assets and growing free cash flow (FCF) per share, which is beginning to happen at WBD. Management has guided that the company will likely be below 4 times net debt to EBITDA by the end of 2023 and to 3x or less by the end of 2024, taking WBD out of the penalty box. We have seen this management team successfully execute this playbook before when Discovery bought former Southeastern holding Scripps in 2017. We are also finally beginning to see industry price rationality across the streaming world.”
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Warner Bros. Discovery, Inc. (NASDAQ:WBD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 60 hedge fund portfolios held Warner Bros. Discovery, Inc. (NASDAQ:WBD) at the end of the fourth quarter which was 61 in the previous quarter.
We discussed Warner Bros. Discovery, Inc. (NASDAQ:WBD) in another article and shared the list of best-diversified stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 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.
