Third Point Management, a New York-based investment advisor, released its fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The Third Point Offshore Fund returned nearly 9.1% in the fourth quarter bringing the yearly returns to 24.2%. The performance was driven by positive results across all strategies – equities, corporate and structured credit, and privates. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Third Point Management emphasized stocks such as Live Nation Entertainment, Inc. (NYSE:LYV). Headquartered in Beverly Hills, California, Live Nation Entertainment, Inc. (NYSE:LYV) is a live entertainment company. The one-month return of Live Nation Entertainment, Inc. (NYSE:LYV) was 16.71%, and its shares gained 67.53% of their value over the last 52 weeks. On February 6, 2024, Live Nation Entertainment, Inc. (NYSE:LYV) stock closed at $149.99 per share, with a market capitalization of $34.59 billion.
Third Point Management stated the following regarding Live Nation Entertainment, Inc. (NYSE:LYV) in its Q4 2024 investor letter:
“During Q2, we made an investment in Live Nation Entertainment, Inc. (NYSE:LYV), the leading integrated global concert company. Having studied the business model and management’s accomplishments for many years, we saw, in our view, an attractive entry point after the shares dislocated on news of an antitrust lawsuit from the Department of Justice (DoJ). We believe LYV is set to compound earnings at a double-digit rate through the next decade driven by strong demand for concerts, robust pricing power, and a sizeable opportunity to reinvest in owned and operated venues.
Live Nation participates in all major parts of the concert value chain (promotion, venue management, ticketing, and sponsorship). Concerts are a $35 billion global industry that has compounded revenue at ~8% per annum since 2000, driven by consistent tailwinds in both supply and demand. Artists are eager to tour because live performances drive most of their income and the rise of social media and streaming music has allowed artists to quickly build a larger, global fanbase. The number of artists selling 250k+ tickets per tour has risen by almost 50% since 2019. While Live Nation has long benefited from these trends, we believe the growth in international demand has created a particularly compelling opportunity in venue construction that the company is just beginning to capitalize on. There is a global undersupply of concert venues; even large music markets such as South Korea and Western Europe have only a third of the seating capacity per capita of the US. We believe Live Nation, as a well-capitalized operator with incredible data on market-by-market trends and multiple monetization vectors, is uniquely positioned to invest in increasing capacity at ~20%+ IRRs. The company is spending over $2 billion on this initiative over the next five years, and we believe the returns are underappreciated by the market…” (Click here to read the full text)
A group of people in a large music venue, enjoying a vibrant concert.
Live Nation Entertainment, Inc. (NYSE:LYV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Live Nation Entertainment, Inc. (NYSE:LYV) at the end of the third quarter which was 50 in the previous quarter. While we acknowledge the potential of Live Nation Entertainment, Inc. (NYSE:LYV) 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 Live Nation Entertainment, Inc. (NYSE:LYV) and shared the list of top stock picks of billionaire Dan Loeb. Vulcan Value Partners sold its stake in Live Nation Entertainment, Inc. (NYSE:LYV) during Q4 2024. 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.