5 Recent Spin-off Companies That Hedge Funds Are Piling Into

2. Madison Square Garden Entertainment Corp. (NYSE:MSGE)

Number of Hedge Fund Holders: 41

Madison Square Garden Entertainment Corp. (NYSE:MSGE) is a live entertainment company that was spun off from Sphere Entertainment Co. (NYSE:SPHR) in April 2023.

Out of the 5 Wall Street analysts that covered Madison Square Garden Entertainment Corp. (NYSE:MSGE) over the last three months, 3 maintained a Buy rating on the stock. The average price target of $38.75 represented an upside of 21.74% at the time of writing on December 15. 

The hedge fund sentiment was positive toward Madison Square Garden Entertainment Corp. (NYSE:MSGE) in the third quarter, according to Insider Monkey’s database. In Q3, 41 funds had investments in the stock, up from 36 in the previous quarter.

Madison Square Garden Entertainment Corp. (NYSE:MSGE) was mentioned in Ariel Investments’ second-quarter 2023 investor letter. Here is what it said:

“Additionally, live entertainment business, Madison Square Garden Entertainment Corp. (NYSE:MSGE) completed its spin-off from Sphere Entertainment Co. (SPHR) in the quarter. The company’s portfolio includes a collection of venues, such as New York’s Madison Square Garden, Radio City Music Hall, Beacon Theatre and The Chicago Theater. MSGE also features the original production of the Christmas Spectacular starring the Radio City Rockettes. In our view, MSGE’s assets are stable cash flow generators and should enable deleveraging. At current valuation levels, the company is trading at an attractive 40% discount to our estimate of private market value.”