Palm Harbour Capital, an investment management company, released its first-quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was up 7.2% gross of fees in the first quarter. The fund was below European benchmarks and slightly better than global benchmarks. The fund’s return from inception to quarter end was 45.2%. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Palm Harbour Capital highlighted stocks like iHeartMedia, Inc. (NASDAQ:IHRT) in the first quarter 2023 investor letter. Headquartered in San Antonio, Texas, iHeartMedia, Inc. (NASDAQ:IHRT) is a media and entertainment company. On June 1, 2023, iHeartMedia, Inc. (NASDAQ:IHRT) stock closed at $2.4900 per share. One-month return of iHeartMedia, Inc. (NASDAQ:IHRT) was -15.45%, and its shares lost 78.40% of their value over the last 52 weeks. iHeartMedia, Inc. (NASDAQ:IHRT) has a market capitalization of $303.628 million.
Palm Harbour Capital made the following comment about iHeartMedia, Inc. (NASDAQ:IHRT) in its Q1 2023 investor letter:
“The second largest detractor was iHeartMedia, Inc. (NASDAQ:IHRT) (-37.5% -58 bps), the American radio and podcasting company. The company suffered two self-inflicted wounds, which will impact the first quarter. The first, which the company flagged as temporary was a change in sales incentives. Apparently, they changed their sales force behaviour to sell more lower margin products at the expense of higher margin products (where management believed it should have been incremental volumes of lower margin not a switch). The second was their guidance for interest rate expense. The company did not hedge their floating term loan and is suffering from the higher interest rate environment, something you do not want to see in a highly levered company. Their debt maturities are years out, but every quarter that passes where free cashflow is low will make refinancing more difficult. Up until now, the company has been executing well, and their podcast business is growing strongly. Management has also been buying shares and we believe their major shareholder, if allowed by the Federal Trade Commission, is potentially interested in owning the business.”
iHeartMedia, Inc. (NASDAQ:IHRT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held iHeartMedia, Inc. (NASDAQ:IHRT) at the end of first quarter 2023 which was 27 in the previous quarter.
We discussed iHeartMedia, Inc. (NASDAQ:IHRT) in another article and shared the list of best broadcasting stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- Rhenium Production by Country: Top 10 Countries
- 14 Best Industrial Stocks to Buy
- 20 Biggest Shipping Companies In The World
Disclosure: None. This article is originally published at Insider Monkey.
