Warner Bros. Discovery (WBD) Shares Experience Selling After Merger

Smead Capital Management, an investment management company, released its “Smead Value Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned -13.33% compared to the S&P 500 Index which lost 16.10% while the Russell 1000 Value Index posted a loss of 12.21%. The bear market affected the performance of the fund in the second quarter and the fund believes that it will act as a blessing for the fund’s long-term performance. Please check the top five holdings of the fund to know more about its best picks in 2022.

In the letter, Smead Capital Management discussed stocks like Warner Bros. Discovery, Inc. (NASDAQ:WBD). Headquartered in New York, New York, Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media company and has a market capitalization of $31.801 billion. The stock of Warner Bros. Discovery, Inc. (NASDAQ:WBD) closed at $13.10 per share on August 10, 2022. One-month return of Warner Bros. Discovery, Inc. (NASDAQ:WBD) was -3.89% and its 12-month return dropped to -54.67%.

Here’s how Smead Capital Management mentioned Warner Bros. Discovery, Inc. (NASDAQ:WBD) in the Q2, 2022 investor letter:

“Leading the downside were stocks we own tied to any economic optimism. Warner Bros. Discovery, Inc. (NASDAQ:WBD) suffered selling from AT&T (T) shareholders disposing of it upon distribution of the shares in the merger. We have been too optimistic about how long it would take for these uninterested parties to sell. Macerich (MAC) suffered from fears of what a recession and higher interest rates would do to their business, disregarding the recovery in the Class “A” mall space since 2020.”

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Although Smead Capital Management invested in Warner Bros. Discovery, Inc. (NASDAQ:WBD), it is not on the list of  30 Most Popular Stocks Among Hedge Funds.

We discussed Warner Bros. Discovery, Inc. (NASDAQ:WBD)  in another article and shared Ray Dalio’s insights about the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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