5 Stocks that Tripled in 2021

1. AMC Entertainment Holdings, Inc. (NYSE:AMC)

Number of Hedge Fund Holders: 17 

Year-To-Date Gain: 1,845%  

AMC Entertainment Holdings, Inc. (NYSE:AMC) operates in the theatrical exhibitions business. Even though cinema audiences, a key source of revenue for the company, have returned as public spaces reopen following a torrid 2020, they are still yet to reach the numbers touched in 2019 and there are debates about the relevance of cinemas in the digital world. 

AMC Entertainment Holdings, Inc. (NYSE:AMC) beat market estimates on earnings per share and revenue in the third quarter and has also stepped up investments in the crypto universe as it seeks to diversify away from the theatrical business. 

At the end of the third quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $252 million in AMC Entertainment Holdings, Inc. (NYSE:AMC), down from 21 in the preceding quarter worth $404 million. 

In its Q4 2020 investor letter, Mittleman Investment Management LLC, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE:AMC) was one of them. Here is what the fund said:

“AMC Entertainment (AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”

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