McIntyre Partnerships, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. Through Q3 2021, McIntyre Partnerships returned approx. 71% gross and 59% net. This compares to S&P 500 and Russell 2000 Value returns including dividends of 16% and 23%, respectively. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
McIntyre Partnerships, in its Q3 2021 investor letter, mentioned Madison Square Garden Entertainment Corp. (NYSE: MSGE) and discussed its stance on the firm. Madison Square Garden Entertainment Corp. is a United States-based entertainment holding company with a $2.3 billion market capitalization. MSGE delivered a -34.45% return since the beginning of the year, while its 12-month returns are down by -22.01%. The stock closed at $68.85 per share on December 21, 2021.
Here is what McIntyre Partnerships has to say about Madison Square Garden Entertainment Corp. in its Q3 2021 investor letter:
“During the quarter, the fund initiated a position in MSGE, which is a holding company controlled by the Dolan family with investments in live entertainment and sports media. The “trader talk” pitch for MSGE is that the stock has extremely solid downside asset protection, anchored by MSGE’s unlevered ownership of the iconic Madison Square Garden arena, and has two significant “call option” type upside investments, the MSG Sphere in Las Vegas and a turnaround of the MSG Networks, which drive multibagger upside potential. To the downside, I believe the MSG arena is worth at least $55 per share, or roughly $2.0B. In the remote event that literally all MSGE’s numerous other businesses are worthless, the unlevered nature of our MSG arena investment provides strong downside support. To the upside, the Las Vegas Sphere is a $1.8B stadium development that could redefine the live concert experience and I believe the emergence of online sports betting and direct-to-consumer local sports media strategies could reinvigorate the MSG Networks. If the company successfully executes, I value shares over $300. At a current price of ~$70, I believe MSGE is an exceptional risk reward.
I am currently in the process of marketing a co-investment opportunity. Investors interested in viewing our MSGE deck are welcome to reach out.”
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Based on our calculations, Madison Square Garden Entertainment Corp. (NYSE: MSGE) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. MSGE was in 19 hedge fund portfolios at the end of the third quarter of 2021, compared to 19 funds in the previous quarter. Madison Square Garden Entertainment Corp. (NYSE: MSGE) delivered a -9.41% return in the past 3 months.
Earlier this month, we also shared another hedge fund’s views on MSGE in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.
Disclosure: None. This article is originally published at Insider Monkey.
