Investment management company Cove Street Capital recently released its “Small Cap Value Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned -10.77% (net of fees) compared to -3.28% for the Russell 2000 Index and -3.64% for the Russell 2000 Value Index. For the first half of 2024, the S&P 500 is up 15%. Its biggest component, Nvidia, has increased by 150% over that time. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Cove Street Capital Small Cap Value Fund highlighted stocks like Lions Gate Entertainment Corp. (NYSE:LGF-B), in the second quarter 2024 investor letter. Lions Gate Entertainment Corp. (NYSE:LGF-B) engages in the film, television, subscription, and location-based entertainment businesses. The one-month return of Lions Gate Entertainment Corp. (NYSE:LGF-B) was 12.43%, and its shares lost 1.79% of their value over the last 52 weeks. On July 10, 2024, Lions Gate Entertainment Corp. (NYSE:LGF-B) stock closed at $8.23 per share with a market capitalization of $2.006 billion.
Cove Street Capital Small Cap Value Fund stated the following regarding Lions Gate Entertainment Corp. (NYSE:LGF-B) in its Q2 2024 investor letter:
“In a similar, but more profitable process, we sold the last of our Lions Gate Entertainment Corp. (NYSE:LGF-B) stock but are reserving the mental right to return. We – like many before us – overvalued the company’s assets and the willingness and ability of the company to sell itself. It has been a volatile stock over the past few years, and we have taken advantage of our internal work on intrinsic value to add value for the portfolio. With 20% dilution from a SPAC and question marks on how the business will be valued as two separate public companies, we took our chips off the table on the most recent run-up.”
A celebrity walking the red carpet during the premiere of the company’s latest film production.
Lions Gate Entertainment Corp. (NYSE:LGF-B) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Lions Gate Entertainment Corp. (NYSE:LGF-B) at the end of the first quarter which was 23 in the previous quarter. While we acknowledge the potential of Lions Gate Entertainment Corp. (NYSE:LGF-B) 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 addition, please check out our hedge fund investor letters Q2 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.
