Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In Q3, US stocks recovered from brief periods of volatility to hit new all-time highs. The portfolio returned strong absolute returns in the third quarter but lagged the benchmark. In the quarter, its Investor Class fund ARTQX returned 8.58%, Advisor Class fund APDQX posted a return of 8.63%, and Institutional Class fund APHQX returned 8.61%, compared to a 10.08% return for the Russell Midcap Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Artisan Mid Cap Value Fund highlighted stocks like MGM Resorts International (NYSE:MGM), in the third quarter 2024 investor letter. MGM Resorts International (NYSE:MGM) owns and operates casino, hotel, and entertainment resorts. The one-month return of MGM Resorts International (NYSE:MGM) was -7.91%, and its shares lost 7.52% of their value over the last 52 weeks. On November 15, 2024, MGM Resorts International (NYSE:MGM) stock closed at $37.28 per share with a market capitalization of $11.1 billion.
Artisan Mid Cap Value Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its Q3 2024 investor letter:
“We are always on the lookout for companies that are under pressure in some form or fashion as this can create the conditions for an attractive entry price. Though equity markets have made substantial gains over the past year, we have still found select opportunities to put capital to work. Q3 purchases included Warner Music Group, MGM Resorts International (NYSE:MGM) and Polaris.
MGM is a leading owner and operator of casinos in Las Vegas, at regional US locations, in China via its ~56% ownership of MGM China (Macau) and in the metaverse via iGaming and sports gambling app BetMGM. BetMGM is a 50% owned joint venture between Entain and MGM for online sports betting (OSB) and iGaming. Gaming is a good business. MGM generates a high-teens return on equity and consistent free cash flow. Free cash flow is used for stock buybacks and reinvestment into the business. We took advantage of the stock’s pullback in August when MGM reported earnings. Despite healthy results in Las Vegas and Macau, BetMGM continued to report losses, and there was cautious commentary about bookings ahead of the November Formula 1 race. Additionally, China macro concerns have been an overhang. The stock sells for about 13X FY1 earnings.”
Aerial shot of an entertainment resort, its buildings and gaming amenities sprawling along the seafront.
MGM Resorts International (NYSE:MGM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held MGM Resorts International (NYSE:MGM) at the end of the second quarter which was 39 in the previous quarter. While we acknowledge the potential of MGM Resorts International (NYSE:MGM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed MGM Resorts International (NYSE:MGM) and shared the list of most undervalued hotel stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2024 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.