Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -1.33% in the fourth quarter, compared to the S&P 500’s 2.41% return and Russell 1000 Value’s -1.98% return. For the year the fund returned 8.80% compared to 25.02% and 14.37% returns for the indexes. For more information on the fund’s best picks in 2024, please check its top five holdings.
Longleaf Partners Fund highlighted stocks like Warner Bros. Discovery, Inc. (NASDAQ:WBD) in the fourth quarter 2024 investor letter. Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media and entertainment company. The one-month return of Warner Bros. Discovery, Inc. (NASDAQ:WBD) was -3.03%, and its shares gained 2.30% of their value over the last 52 weeks. On January 28, 2024, Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock closed at $10.25 per share with a market capitalization of $25.14 billion.
Longleaf Partners Fund stated the following regarding Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q4 2024 investor letter:
“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate WBD was a detractor in the quarter and the year. We exited our position during the quarter to reallocate capital to opportunities with stronger qualitative and quantitative characteristics. In retrospect, WBD represents an error of commission as noted above. Our original thesis did not fully account for the company’s leverage and growth challenges in its linear TV and studio businesses. Adding insult to injury, the stock price has gone up since our exit, fueled by rumours of a potential linear TV business deal with Comcast. While this development offers some validation of WBD’s strategic assets, it is tempered by significant insider selling following the recent stock price increase. Time will tell if our decision to sell was the right one, but our focus remains on seeking investments that are growing and on offense.”
A movie theater auditorium filled with an audience enjoying a blockbuster film.
Warner Bros. Discovery, Inc. (NASDAQ:WBD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Warner Bros. Discovery, Inc. (NASDAQ:WBD) at the end of the third quarter which was 48 in the previous quarter. While we acknowledge the potential of Warner Bros. Discovery, Inc. (NASDAQ:WBD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Warner Bros. Discovery, Inc. (NASDAQ:WBD) and shared the list of best leisure and recreation services stocks to buy. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.