Is it Still Safe to Invest in Empire State Realty (ESRT)?

Longleaf Partners Fund, a Memphis-based fund under Southeastern Asset Management, published its “Longleaf Partners Small-Cap Fund” second quarter 2022 investor letter – a copy of which can be downloaded here. Longleaf Partners Small-Cap Fund declined 15.66% in the second quarter, outperforming the Russell 2000 Index, which declined 17.20%, and roughly in line with the Russell 2000 Value. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Longleaf Partners Small-Cap Fund mentioned Empire State Realty Trust, Inc. (NYSE:ESRT) and explained its insights for the company. Founded in 2013, Empire State Realty Trust, Inc. (NYSE:ESRT) is a US-based real estate investment trust company with a $2.06 billion market capitalization. Empire State Realty Trust, Inc. (NYSE:ESRT) delivered a -17.87% return since the beginning of the year, while its 12-month returns are down by -25.71%. The stock closed at $7.31 per share on September 20, 2022.

 Here is what Longleaf Partners Small-Cap Fund has to say about Empire State Realty Trust, Inc. (NYSE:ESRT) in its Q2 2022 investor letter:

“Empire State Realty – New York commercial real estate and tourism company Empire State Realty Trust (NYSE:ESRT) also declined with real estate broadly, even though it is not a direct pure play on commercial real estate, given its Observatory business, whose economics are more similar to a Disney World-type theme park. The Observatory will continue to come back as post-COVID travel resumes. CEO Tony Malkin and team are focused on driving value realization by monetizing assets and continuing the share repurchase program.”

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Our calculations show that Empire State Realty Trust, Inc. (NYSE:ESRT) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Empire State Realty Trust, Inc. (NYSE:ESRT) was in 11 hedge fund portfolios at the end of the second quarter of 2022, compared to 20 funds in the previous quarter. Empire State Realty Trust, Inc. (NYSE:ESRT) delivered a 5.03% return in the past 3 months.

Last year, we also shared Longleaf Partners Fund’s views on Empire State Realty Trust, Inc. (NYSE:ESRT) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

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