Baron Opportunity Fund recently published its second-quarter commentary – a copy of which can be downloaded here. During the second quarter of 2021, the Baron Opportunity Fund returned 10.14% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.55%, while the Russell 3000 Growth Index was up 11.38%. You should check out Baron’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.
In the Q2 2021 Investor Letter, the fund highlighted a few stocks and Endeavor Group Holdings Inc. (NYSE:EDR) is one of them. Endeavor Group Holdings Inc. (NYSE:EDR) operates as a holding company. In the last three months, Endeavor Group Holdings Inc. (NYSE:EDR) stock lost 14%. Here is what the fund said:
“We participated in the IPO of Endeavor Group Holdings, Inc., a media and entertainment conglomerate built and led by CEO Ari Emmanuel, with assets spanning talent representation (Endeavor, William Morris), events production and distribution (IMG, Fashion Week, the Miami Open), marketing and licensing, and owned sports/media properties, most notably the UFC. In our analysis, some 50% of Endeavor’s operating cash flow (EBITDA) and 60% to 70% of value comes from the UFC, which is the dominant platform in what we believe is a sport increasingly entering the mainstream, both in the U.S. and abroad. We believe the opportunities to grow UFC revenue over the medium term through sponsorship, event revenue, and especially broadcast rights contracts, are substantial both in new territories and at renewal of existing agreements given the sport’s growth trajectory. We also like the asset’s structure relative to other sports, with greater control and superior economics to the league itself versus underlying teams. Beyond the UFC, Ari and team have built the combined William Morris Endeavor & IMG into a platform rather than simply an agency, with broader capabilities to help both talent and corporate brands monetize across ever proliferating forms of media consumption, which we think makes the business stickier and likely to gain share. Finally, we expect future opportunistic acquisitions to be accretive, particularly in owned sports and properties, where Endeavor can bring its capabilities and platform to bear to accelerate the targets’ growth and extract cost synergies.”
Pixabay/Public Domain
Our calculations showed that Endeavor Group Holdings Inc. (NYSE:EDR) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
