Ariel Investments, an investment management company, released its “Ariel Fund” first-quarter 2024 investor letter. A copy of the same can be downloaded here. US equities exceeded expectations in the first quarter of 2024. The market was driven by optimism and strong market sentiment. The fund appreciated +6.41% in the quarter against this backdrop, outperforming the Russell 2500 Value Index’s +6.07% gain however, slightly trailing the Russell 2500 Index’s +6.92% return. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Ariel Fund highlighted stocks like Madison Square Garden Entertainment Corp. (NYSE:MSGE), in the first quarter 2024 investor letter. Madison Square Garden Entertainment Corp. (NYSE:MSGE) is a live entertainment services company. The one-month return of Madison Square Garden Entertainment Corp. (NYSE:MSGE) was -6.14%, and its shares lost 8.41% of their value over the last 52 weeks. On June 6, 2024, Madison Square Garden Entertainment Corp. (NYSE:MSGE) stock closed at $34.76 per share with a market capitalization of $1.68 billion.
Ariel Fund stated the following regarding Madison Square Garden Entertainment Corp. (NYSE:MSGE) in its first quarter 2024 investor letter:
“Additionally, Madison Square Garden Entertainment Corp. (NYSE:MSGE), shares advanced in the quarter following a robust earnings beat, driven by an increase in the number of concerts held at MSGE’s venues, strong demand for the Christmas Spectacular and higher per-event revenues. Notably, management raised full year 2024 guidance and reiterated its outlook to achieve a low-double-digit percentage increase in event bookings. 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 demand for live entertainment. In our view, MSGE’s assets generate stable cash flow that should enable deleveraging. At current 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 31 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Madison Square Garden Entertainment Corp. (NYSE:MSGE) at the end of the first quarter which was 39 in the previous quarter. Madison Square Garden Entertainment Corp. (NYSE:MSGE) reported revenues of approximately $228 million in the quarter, up 13% compared to the same period last year. While we acknowledge the potential of Madison Square Garden Entertainment Corp. (NYSE:MSGE) 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 Madison Square Garden Entertainment Corp. (NYSE:MSGE) and shared Ariel Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.
