Third Avenue Management, an investment management company based in New York City, released its “Small-Cap Value Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. Unlike the volatile first quarter, there was a methodological increase in returns in the second quarter. The fund returned 2.98% in Q2 compared to a 3.18% return for the Russell 2000 Value Index. For the first half of 2023, the fund returned 7.27% compared to 2.50% for the benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Third Avenue Small-Cap Value Fund highlighted stocks like Madison Square Garden Entertainment Corp. (NYSE:MSGE) in the second quarter 2023 investor letter. Headquartered in New York, New York, Madison Square Garden Entertainment Corp. (NYSE:MSGE) engages in live entertainment business. On July 31, 2023, Madison Square Garden Entertainment Corp. (NYSE:MSGE) stock closed at $34.84 per share. One-month return of Madison Square Garden Entertainment Corp. (NYSE:MSGE) was 4.00%, and its shares gained 5.42% of their value over the last three months. Madison Square Garden Entertainment Corp. (NYSE:MSGE) has a market capitalization of $1.777 billion.
Third Avenue Small-Cap Value Fund made the following comment about Madison Square Garden Entertainment Corp. (NYSE:MSGE) in its second quarter 2023 investor letter:
“EMCOR Group and Madison Square Garden Entertainment Corp. (NYSE:MSGE) were eliminated in the second quarter. Madison Square Garden Entertainment was sold after being spun-off from Sphere Entertainment Company during the quarter. Our thoughts on the spin were outlined in the 1Q 2023 letter. As often happens after a spin-off, investors pick sides. Given the valuation disparities in the post-spin period, Fund Management believed Sphere Entertainment offered a better risk/ reward proposition. First, Fund Management preferred Sphere’s balance sheet. In addition, according to our analysis, we believed the Sphere’s Las Vegas assets were being valued at just $200 million despite Sphere investing over $2 billion in the project. The venue opens in September with U2 beginning its residency. A successful opening could help change the narrative around the project. Finally, Sphere retained shares of Madison Square Garden Entertainment as part of the spin-off. Madison Square Garden Entertainment repurchased a portion of those shares late in the second quarter which further boosted Sphere’s financial position further improving the risk and return profile of the security.”
Photo by wilfried Vowoto on Unsplash
Madison Square Garden Entertainment Corp. (NYSE:MSGE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 19 hedge fund portfolios held Madison Square Garden Entertainment Corp. (NYSE:MSGE) at the end of first quarter which was 20 in the previous quarter.
We discussed Madison Square Garden Entertainment Corp. (NYSE:MSGE) in another article and Ariel Focus Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 12 Best Energy ETFs: Top Oil, Gas and Renewable Energy Funds
- 25 Most Popular Whiskey Brands in the World
- What Are The Best Stocks To Buy Right Now?
Disclosure: None. This article is originally published at Insider Monkey.
