Black Bear Value Partners recently released its Q4 2020 Investor Letter, a copy of which you can download here. The fund posted a return of -6.5% (net) in 2020, underperforming its benchmark, the S&P 500 Index which returned 18.4% in the same period. You should check out Black Bear Value Partners’ top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.
In the Q4 2020 Investor Letter, the fund highlighted a few stocks and Madison Square Garden Entertainment Corp. (NYSE:MSGE) is one of them. Madison Square Garden Entertainment Corp. (NYSE:MSGE) is an entertainment holding company. In the last three months, Madison Square Garden Entertainment Corp. (NYSE:MSGE) stock gained 38% and on March 12th it had a closing price of $106.25. Here is what the fund said:
“MSGE is a real estate owner/operator with core properties at the epicenter of COVID (NYC and Las Vegas). Their largest assets include Madison Square Garden (the arena, associated air rights and the attached theatre), the Tao Group and the Radio City Rockettes show. In addition, they are in the process of building a large event space called The Sphere in Las Vegas that connects to the Venetian. Business is not going well now as they are effectively closed to outside customers. What protects them is an extremely healthy balance sheet with plenty of cash, limited debt, and a reduced corporate cost structure.
These assets have real value, a strong franchise and customer interest. People will attend sporting events, concerts, and shows again. Their strong financial position will allow them to get to the other side of the COVID canyon.
We purchased our shares at a price that implied a 50% discount to fair value (implying a 100% potential return). While the stock is up 30+% since then, it remains cheap. As a long-term investor I wouldn’t mind seeing it go down as I’d like to be buying more of it at a cheaper price.”
Last week, we published an article revealing that Ariel Investments sees bright future in Madison Square Garden Entertainment Corp. (NYSE:MSGE) stock.
In Q3 2020, the number of bullish hedge fund positions on Madison Square Garden Entertainment Corp. (NYSE:MSGE) stock decreased by about 11% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in MSGE’s growth potential. Our calculations showed that Madison Square Garden Entertainment Corp. (NYSE:MSGE) isn’t ranked among the 30 most popular stocks among hedge funds.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:
Disclosure: None. This article is originally published at Insider Monkey.
