Ariel Investments, an investment management company, released its “Ariel Fund” fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. Global markets in 2023 outperformed expectations, led by large-cap tech stocks known as the “magnificent seven.” Improving inflation data and dovish comments from the Fed drove a strong finish to the year. Ariel Fund rose +13.41% in the fourth quarter, in line with the +13.35% of the Russell 2500 Index, but short of the +13.76% of the Russell 2500 Value Index. Over the past year, Ariel Fund increased by +15.81%, slightly below the +15.98% of the Russell 2500 Value Index and behind the +17.42% gain of the Russell 2500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ariel Fund featured stocks like Madison Square Garden Entertainment Corp. (NYSE:MSGE) in the fourth quarter 2023 investor letter. Headquartered in New York, New York, Madison Square Garden Entertainment Corp. (NYSE:MSGE) engages in the live entertainment business. On March 8, 2024, Madison Square Garden Entertainment Corp. (NYSE:MSGE) stock closed at $37.97 per share. The one-month return of Madison Square Garden Entertainment Corp. (NYSE:MSGE) was 3.38%, and TYD, its shares gained 19.44% of their value. Madison Square Garden Entertainment Corp. (NYSE:MSGE) has a market capitalization of $1.822 billion.
Ariel Fund stated the following regarding Madison Square Garden Entertainment Corp. (NYSE:MSGE) in its fourth quarter 2023 investor letter:
“Lastly, shares of live entertainment business, Madison Square Garden Entertainment Corp. (NYSE:MSGE), fell following an earnings miss. Revenue declined year-over-year due to fewer concerts versus the prior year period which benefitted from ~30 rescheduled performances due to COVID. Excluding the rescheduled shows, the number of events were up mid-teens and revenue per concert continued to increase. As a result of strong demand, the Christmas Spectacular added additional shows and given strong visibility into the event pipeline, management reiterated fiscal full year 2024 guidance. With marquee assets such as New York’s Madison Square Garden, Radio City Music Hall, Beacon Theatre and The Chicago Theater, we believe MSGE is well positioned to capitalize on strong live entertainment demand. In our view, MSGE’s assets are stable cash flow generators and should enable deleveraging. At current valuation levels, the company is trading at a significant discount to our estimate of private market value.”
Stagehands setting up the equipment for a live entertainment event.
Madison Square Garden Entertainment Corp. (NYSE:MSGE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, Madison Square Garden Entertainment Corp. (NYSE:MSGE) was held by 39 hedge fund portfolios, down from 41 in the previous quarter, according to our database.
We discussed Madison Square Garden Entertainment Corp. (NYSE:MSGE) in another article and shared McIntyre Partnerships’ views on the company. In addition, please check out our hedge fund investor letters Q4 2023 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.
