Meridian Funds, managed by ArrowMark Partners, released its “Meridian Hedged Equity Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The significant move by the FED to cut the interest rate helped the market to stabilize. In the quarter, the fund appreciated 6.19% (net), outperforming its benchmark, the S&P 500 Index, which returned 5.89%, and its secondary benchmark, the CBOE S&P 500 Buy/Write Index’s 5.54% return. It anticipates that capital preservation in bear markets will eventually play a significant role in the long-term compounding of returns. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Meridian Hedged Equity Fund highlighted stocks like MGM Resorts International (NYSE:MGM), in the third quarter 2024 investor letter. MGM Resorts International (NYSE:MGM) owns and operates casino, hotel, and entertainment resorts. The one-month return of MGM Resorts International (NYSE:MGM) was -1.36%, and its shares lost 5.25% of their value over the last 52 weeks. On November 27, 2024, MGM Resorts International (NYSE:MGM) stock closed at $37.37 per share with a market capitalization of $11.13 billion.
Meridian Hedged Equity Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its Q3 2024 investor letter:
“MGM Resorts International (NYSE:MGM) is a global hospitality and entertainment company with a portfolio of destination casino resorts, primarily in Las Vegas, regional U.S. markets, and Macau. While MGM reported better-than-expected operating results in the quarter, driven by strength in both Las Vegas and Macau, its share price has been under pressure due to two main factors. First, BetMGM’s performance has lagged expectations, with ongoing losses and increased competition affecting investor sentiment toward the online gaming sector. Second, and perhaps of more immediate concern to the market, were management’s comments about softening early demand trends for the upcoming Formula One race in Las Vegas, raising concerns about potential weakness in the fourth quarter. While these factors contributed to volatility, we view them as likely short-term headwinds that do not materially impact our long-term investment thesis. As a result, we held our position steady in the period. We believe the company’s underlying fundamentals remain strong, and its assets provide an attractive fundamental floor value.”
Aerial shot of an entertainment resort, its buildings and gaming amenities sprawling along the seafront.
MGM Resorts International (NYSE:MGM) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held MGM Resorts International (NYSE:MGM) at the end of the third quarter which was 44 in the previous quarter. While we acknowledge the potential of MGM Resorts International (NYSE:MGM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed MGM Resorts International (NYSE:MGM) and shared Artisan Mid Cap Value Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 2024 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.