Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. The fund was 5.15% up in the second quarter, compared to S&P’s return of 8.74% and Russell 1000 Value’s 4.07% return. YTD, the fund returned 17.42% outperforming S&P 500’s 16.89% return. The portfolio’s lack of exposure to Information Technology and relative overweight to Consumer Discretionary weighed on the relative performance of the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Longleaf Partners Fund highlighted stocks like Warner Bros. Discovery, Inc. (NASDAQ:WBD) in the second quarter 2023 investor letter. Headquartered in New York, Warner Bros. Discovery, Inc. (NASDAQ:WBD) is a media and entertainment company. On September 7, 2023, Warner Bros. Discovery, Inc. (NASDAQ:WBD) stock closed at $11.03 per share. One-month return of Warner Bros. Discovery, Inc. (NASDAQ:WBD) was -19.49%, and its shares lost 15.35% of their value over the last 52 weeks. Warner Bros. Discovery, Inc. (NASDAQ:WBD) has a market capitalization of $26.884 billion.
Longleaf Partners Fund made the following comment about Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its Q2 2023 investor letter:
“Warner Bros. Discovery, Inc. (NASDAQ:WBD) – Media conglomerate Warner Bros Discovery was the top detractor in the quarter but remained a top contributor for the first half. After a strong first quarter, the stock price faltered in the face of near-term uncertainty around the re-launch of streaming service Max. Additionally, the big budget movie The Flash has not been a success. Finally, there was well-publicized drama around CNN management, with CNN CEO Chris Licht leaving the company after only one year, which we believe was a positive resolution. The company remains dramatically undervalued today, and management continues to make positive operational progress to drive free cash flow (FCF) growth. We believe this company has seen the worst so will be less leveraged and more strategically positioned in the quarters and years to come. Its underlying holdings are high quality businesses that will drive FCF per share growth while also being attractive acquisition candidates.”
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Warner Bros. Discovery, Inc. (NASDAQ:WBD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Warner Bros. Discovery, Inc. (NASDAQ:WBD) at the end of second quarter which was 63 in the previous quarter.
We discussed Warner Bros. Discovery, Inc. (NASDAQ:WBD) in another article and shared the list of high growth value stocks to buy according to Seth Klarman. In addition, please check out our hedge fund investor letters Q2 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.
