Should You Still Consider Investing in Madison Square Garden (MSGE)?

Ariel Investments, an investment management firm, published its “Ariel Focus Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. Ariel Focus Fund returned -4.71% in the third quarter, trailing the Russell 1000 Value Index which lost -0.78%, and the S&P 500 Index which gained +0.58%. Year-to-date, Ariel Focus Fund has earned +15.44% compared to +16.14% for the Russell 1000 Value Index and +15.92% for the S&P 500. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Ariel Focus Fund, in its Q3 2021 investor letter, mentioned Madison Square Garden Entertainment Corp. (NYSE: MSGE) and discussed its stance on the firm. Madison Square Garden Entertainment Corp. is a United States-based entertainment holding company with a $2.1 billion market capitalization. MSGE delivered a -40.16% return since the beginning of the year, while its 12-month returns are down by -21.60%. The stock closed at $62.86 per share on December 16, 2021.

Here is what Ariel Focus Fund has to say about Madison Square Garden Entertainment Corp.  in its Q3 2021 investor letter:

“Madison Square Garden Entertainment (MSGE) declined -13.46% during the quarter. Earlier this year, MSGE announced its re-combination with the regional sports network (“RSN”) Madison Square Garden Networks (MSGN). Wall Street shared our concerns about the transaction driving MSGE’s stock down from a high of $121.42 this past March to $82 following the announcement of the deal. The stock has continued to drift lower as Comcast publicized its plan to drop MSGN from its cable lineup. Although they share a name and corporate history, both versions of Madison Square Garden have operated in very different businesses with very different growth profiles and only modest operating synergies.”

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Based on our calculations, Madison Square Garden Entertainment Corp. (NYSE: MSGE) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. MSGE was in 19 hedge fund portfolios at the end of the third quarter of 2021, compared to 19 funds in the previous quarter. Madison Square Garden Entertainment Corp. (NYSE: MSGE) delivered a -19.87% return in the past 3 months.

Earlier this year, we also shared another hedge fund’s views on MSGE in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

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