Should You Consider Investing in Discovery, Inc. (DISCK)?

Smead Capital Management, an investment management firm, published its “Smead Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. For the fourth quarter, the Fund was up 8.30% versus the gain of 11.03% in the S&P 500 Index and the Russell 1000 Value Net Index of 7.77%. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Smead Funds, in its Q4 2021 investor letter, mentioned Discovery, Inc. (NASDAQ: DISCK) and discussed its stance on the firm. Discovery, Inc. is a New York, New York-based mass media company with a $15.0 billion market capitalization. DISCK delivered a 29.74% return since the beginning of the year, while its 12-month returns are down by -23.82%. The stock closed at $29.71 per share on February 09, 2022.

Here is what Smead Funds has to say about Discovery, Inc. in its Q4 2021 investor letter:

“Our duds in the fourth quarter were barely duds. We lost ground on shares of Discovery Inc. (DISCK) in the second half of the year after selling out 5% of the “A” shares at an average of $59.58. We started buying those shares back in relatively cheaper “C” shares, which have the same economic interest as the “A” shares. Those buy back prices look good compared to $59.58, but not the low $20s where the merger with Warner Media has taken the stock.”

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Our calculations show that Discovery, Inc. (NASDAQ: DISCK) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. DISCK was in 28 hedge fund portfolios at the end of the third quarter of 2021, compared to 35 funds in the previous quarter. Discovery, Inc. (NASDAQ: DISCK) delivered an 8.95% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on DISCK in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.