Miller Value Partners, an investment management company, released its “Deep Value Select Strategy” third-quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, Strategy returned +15.50% net-of-fees ahead of the S&P 1500 Value Index -4.20% return. Year to date through September 30, 2023, the fund returned +8.56% (net of fees) compared to +6.98% return for the index. Most of the strategy’s investments participated in the stronger quarter. 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 Gray Television, Inc. (NYSE:GTN) in the third quarter 2023 investor letter. Headquartered in Atlanta, Georgia, Gray Television, Inc. (NYSE:GTN) is a television broadcasting company. On October 17, 2023, Gray Television, Inc. (NYSE:GTN) stock closed at $6.76 per share. One-month return of Gray Television, Inc. (NYSE:GTN) was -5.45%, and its shares lost 56.25% of their value over the last 52 weeks. Gray Television, Inc. (NYSE:GTN) has a market capitalization of $647.129 million.
Miller Value Deep Value Strategy made the following comment about Gray Television, Inc. (NYSE:GTN) in its Q3 2023 investor letter:
“The two largest detractors were American Axle (AXL) and Gray Television, Inc. (NYSE:GTN), with share prices down 12% and 11% during the quarter. Both company’s shares appear significantly mispriced, providing long-term upside potential multiples of their current share price.
Gray Television (GTN) has also been under pressure with ongoing recessionary fears. The company has a strong market position, with the #1 ranked local TV station in 70% of its markets. We see the potential for earnings and free cash flow to dramatically improve as political advertising reaccelerates due to the upcoming election year. In addition, there are low expectations in Gray’s stock price for their Assembly asset, as no analysts are currently including any future economics. With the writers strike behind the industry, Assembly studios will begin to scale up production. While the company has significant debt leverage from prior acquisitions, there are limited maturities over the next couple of years. We see strong free cash flow generation over the next 5 years (potentially >$2.5B) that could allow the company to rapidly de-lever. With a greater than 60% forward earnings and free cash flow yield, Gray’s long-term upside potential is multiples of the current share price.”
A customer watching a movie on their HD television through a video-on-demand service. Editorial photo for a financial news article. 8k. –ar 16:9
Gray Television, Inc. (NYSE:GTN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held Gray Television, Inc. (NYSE:GTN) at the end of second quarter which was 27 in the previous quarter.
We discussed Gray Television, Inc. (NYSE:GTN) in another article and shared the list of best U.S. stocks to buy under $10. In addition, please check out our hedge fund investor letters Q3 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.
