Scout Investments, Inc, an affiliate of Carillon Tower Advisers, released the “Carillon Scout Mid Cap Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The Russell Midcap® Index fell in Q2 as investors prioritized mega-cap technology businesses over smaller ones. IT, communications, and utilities were among the midcap industries with significant links to AI and attractive returns, as they matched the power requirements of AI servers. Surprisingly, the generally less cyclical consumer staples and healthcare sectors underperformed despite the index’s negative returns in the quarter. Overall, the U.S. economy appears steady going into the second half of the year. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Carillon Scout Mid Cap Fund highlighted stocks like TKO Group Holdings, Inc. (NYSE:TKO), in the second quarter 2024 investor letter. TKO Group Holdings, Inc. (NYSE:TKO) is a sports and entertainment company. The one-month return of TKO Group Holdings, Inc. (NYSE:TKO) was -3.16%, and its shares gained 11.55% of their value over the last 52 weeks. On September 9, 2024, TKO Group Holdings, Inc. (NYSE:TKO) stock closed at $114.95 per share with a market capitalization of $9.314 billion.
Carillon Scout Mid Cap Fund stated the following regarding TKO Group Holdings, Inc. (NYSE:TKO) in its Q2 2024 investor letter:
“Sports entertainment and live events company TKO Group Holdings, Inc. (NYSE:TKO), which owns both World Wrestling Entertainment (WWE) and Ultimate Fighting Championship (UFC), also did well during the quarter. The company settled a compensation practices lawsuit with its athletes late in the first quarter, which removed a risk from the stock. Financial results were also strong, as demand for live entertainment led to strong revenue, and synergies from the WWE/UFC merger helped margins. Going forward, new television rights deals for WWE programming start impacting the company’s income statement in 2025, with the potential for a strong additional boost from renewing the UFC rights at some point in 2025, which we believe should help sustain growth going forward.”
A diverse and enthusiastic live audience attending a sold out WWE event.
TKO Group Holdings, Inc. (NYSE:TKO) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held TKO Group Holdings, Inc. (NYSE:TKO) at the end of the second quarter which was 41 in the previous quarter. TKO Group Holdings, Inc. (NYSE:TKO) achieved record Q2 revenue of $851 million, with net income of $151 million and adjusted EBITDA of $421 million. While we acknowledge the potential of TKO Group Holdings, Inc. (NYSE:TKO) 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 addition, please check out our hedge fund investor letters Q2 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.
