Here’s Why Mayar Capital Sold Warner Bros. Discovery (WBD)

Mayar Capital, an asset management company, released its second quarter 2022 investor letter. A copy of the same can be downloaded here. Mayar Fund (Class A) was down 12.54% net of all fees and expenses in the second quarter. The fund has increased 161.23% since its inception in May 2011. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Mayar Capital discussed stocks like Warner Bros. Discovery, Inc. (NASDAQ:WBD). Headquartered in New York, New York, Warner Bros. Discovery, Inc. (NASDAQ:WBD) operates as a media company. On September 1, 2022, Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock closed at $13.19 per share. One-month return of Warner Bros. Discovery, Inc. (NASDAQ:WBD) was -10.52% and its shares lost 53.43% of their value over the last 52 weeks. Warner Bros. Discovery, Inc. (NASDAQ:WBD) has a market capitalization of $32.141 billion.

Here is what Mayar Capita specifically said about Warner Bros. Discovery, Inc. (NASDAQ:WBD):

“We sold the last of our shares in Warner Bros. Discovery, Inc. (NASDAQ:WBD) in early April. Luckily, we were able to sell the majority of our long-held holdings in the crazy run-up that accompanied the Archegos Capital debacle in early 2021. We did, however, re-build a position in the stock when the stock went back down and this second go was disappointing.

We weren’t happy with the shift in strategy from the company’s core non-scripted and documentary content—where it commanded a leading position— into the wider media business it dived into with the Warner Media acquisition. We were also unhappy with the resulting increase in debt levels. It was time to take our money and walk away.”

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Warner Bros. Discovery, Inc. (NASDAQ:WBD) is not on the list of 30 Most Popular Stocks Among Hedge Funds. Warner Bros. Discovery, Inc. (NASDAQ:WBD) was held by 68 hedge fund portfolios at the end of the second quarter compared to 47 in the previous quarter.

We discussed Warner Bros. Discovery, Inc. (NASDAQ:WBD) in another article and shared Argosy Investors’ views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

Disclosure: None. This article is originally published at Insider Monkey.