Miller Value Partners, an investment management company, released its “Deep Value Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the Deep Value Strategy was down 2% net-of-fees lagging behind the overall market and the S&P 1500 Value Index. Lower valuation and smaller cap stocks trailed the overall equity market from March to May. The firm also witnessed significant valuation compression in its holdings. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Miller Value Deep Value Strategy highlighted stocks like Gannett Co., Inc. (NYSE:GCI) in the second quarter 2023 investor letter. Headquartered in McLean, Virginia, Gannett Co., Inc. (NYSE:GCI) is a media and marketing solutions company. On July 18, 2023, Gannett Co., Inc. (NYSE:GCI) stock closed at $2.76 per share. One-month return of Gannett Co., Inc. (NYSE:GCI) was 43.75%, and its shares lost 8.00% of their value over the last 52 weeks. Gannett Co., Inc. (NYSE:GCI) has a market capitalization of $433.234 billion.
Miller Value Deep Value Strategy made the following comment about Gannett Co., Inc. (NYSE:GCI) in its second quarter 2023 investor letter:
“During the quarter, our largest positive contributor was Gannett Co., Inc. (NYSE:GCI), whose share price rose in excess of 20%. Management’s quick action undertaking an aggressive $240M cost reduction program have begun to offset inflationary pressures and stabilize their transformation plan. This point in time for Gannett appears remarkably similar to The New York Times transformation 10 years ago. NY Times’ share price rose 10-fold since then as the company successfully eliminated $1B corporate debt and scaled their digital subscribers to stabilize cash flow generation and return to growth. We believe Gannett potentially has a greater monetization opportunity due to their larger 180M monthly visits to their digital platforms. By further expanding their digital offerings and developing new high[1]margin content partnerships, Gannett appears positioned to return to growth over the next 12-18 months. In addition, Gannett recently announced an anti-trust lawsuit against Google which follows similar actions by the European Central Bank (ECB) and various states. Winning the case has the potential to accelerate the transformation, as anti-trust cases have treble damages which can award up to three times compensatory damages, potentially leading to a future award well in excess of $1B, versus a current market capitalization of approximately $370M.”
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Gannett Co., Inc. (NYSE:GCI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 17 hedge fund portfolios held Gannett Co., Inc. (NYSE:GCI) at the end of first quarter which was 17 in the previous quarter.
We discussed Gannett Co., Inc. (NYSE:GCI) in another article and shared the list of biggest journalism companies in the US. 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.
