Longleaf Partners, managed by Southeastern Asset Management, released its “Partners Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned 10.42% in the third quarter, compared to the S&P 500’s 5.89% return and Russell 1000 Value’s 9.43% return. In the quarter, there were very few detractors, and more than half of the portfolio holdings generated double-digit returns. The market is starting to see the value in many of the companies that the firm highlighted in the first two letters this year, which is positive. For more information on the fund’s best picks in 2024, please check its top five holdings.
Longleaf Partners Fund highlighted stocks like MGM Resorts International (NYSE:MGM), in the third quarter 2024 investor letter. MGM Resorts International (NYSE:MGM) engages in the manufacturing and marketing of snacks and convenience foods. The one-month return of MGM Resorts International (NYSE:MGM) was 1.21%, and its shares gained 17.15% of their value over the last 52 weeks. On October 24, 2024, MGM Resorts International (NYSE:MGM) stock closed at $40.10 per share with a market capitalization of $12.181 billion.
Longleaf Partners Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its Q3 2024 investor letter:
“MGM Resorts International (NYSE:MGM) – Hospitality and gaming company MGM Resorts was the top detractor in the quarter. The day of the company’s earnings report, the stock price was down 13%; however, we saw nothing in the report that alters our long-term investment case. While this industry can experience some quarter-to-quarter volatility, we remain confident in the long-term earnings potential. MGM continues to generate substantial FCF and execute significant share buybacks, further boosting FCF per share. MGM is also enhancing its online offering and continuing to streamline its portfolio with more non-core asset sale potential ahead. We remain confident in the management team, led by CEO Bill Hornbuckle.”
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, 44 hedge fund portfolios held MGM Resorts International (NYSE:MGM) at the end of the second quarter which was 39 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 the list of cheap travel stocks to buy according to analysts. 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.
