5 Cheap Stocks Hedge Funds Are Talking About

2. ViacomCBS Inc. (NASDAQ:VIAC), now Paramount Global (NASDAQ:PARA)

Price as of March 11, 2022: $30.40 per share

Ariel Investments published its “Ariel Focus Fund” third-quarter 2021 investor letter last year – a copy of which can be downloaded here. Ariel Focus Fund lost 4.71% in the third quarter, trailing the Russell 1000 Value Index, which lost 0.78%, and the S&P 500 Index, which gained 0.58%. During the first three quarters of 2021, the Ariel Focus Fund had gained 15.44% compared to 16.14% gains for the Russell 1000 Value Index and 15.92% gains for the S&P 500. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2022.

Ariel Focus Fund, in its Q3 2021 investor letter, mentioned ViacomCBS Inc. (NASDAQ:VIAC) and discussed its stance on the firm. ViacomCBS Inc. (NASDAQ:VIAC) is a New York, New York-based mass media company, and was recently acquired by Paramount Global (NASDAQ:PARA).

Here is what Ariel Focus Fund had to say about ViacomCBS Inc. (NASDAQ:VIAC) in its Q3 2021 investor letter:

“Leading entertainment company, ViacomCBS Inc. (NASDAQ:VIAC) was the top contributor to relative performance over the trailing one-year period. Shares continued to benefit from solid earnings results and continued investor enthusiasm surrounding the launch of Paramount+ and other international streaming video on demand services. As the price of ViacomCBS Inc. substantially increased during the period, management announced an equity offering and a mandatory convertible preferred stock offering to further support investment in its streaming services. Shares began to tumble on the news, as an overleveraged family office, Archegos Capital Management, became a forced seller of the company. As prices moved closer to our assessment of intrinsic value, we reduced our position size in the company, insulating our portfolios from the largest weekly decline in the stock’s history and maintaining its status as a top contributor.”