Baron Opportunity Fund Sold Endeavor Group Holdings (EDR) upon Merger Announcement
Baron Funds, an investment management company, released its “Baron Opportunity Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund increased by 16.31% (Institutional Shares) outperforming the broader market including the Russell 3000 Growth Index and the S&P 500 Index, which gained 12.47% and 8.74% respectively. The Fund was up 37.21% year to date and 27.86% for the trailing 12 months, respectively, outperforming both indices. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Opportunity Fund highlighted stocks like Endeavor Group Holdings, Inc. (NYSE:EDR) in the second quarter 2023 investor letter. Based in Beverly Hills, California, Endeavor Group Holdings, Inc. (NYSE:EDR) is an entertainment, sports, and content company. On August 22, 2023, Endeavor Group Holdings, Inc. (NYSE:EDR) stock closed at $24.75 per share. One-month return of Endeavor Group Holdings, Inc. (NYSE:EDR) was 4.25%, and its shares gained 8.60% of their value over the last 52 weeks. Endeavor Group Holdings, Inc. (NYSE:EDR) has a market capitalization of $7.518 billion.
Baron Opportunity Fund made the following comment about Endeavor Group Holdings, Inc. (NYSE:EDR) in its second quarter 2023 investor letter:
"During the quarter, our largest purchase was World Wrestling Entertainment, Inc. (WWE) and our largest sale was Endeavor Group Holdings, Inc. (NYSE:EDR). We swapped one for the other upon the two companies’ announcements that they plan to merge Endeavor’s Ultimate Fighting Championship (UFC) asset with the WWE in a new publicly traded vehicle, with Endeavor maintaining majority control of the combined business. We’ve been shareholders in Endeavor since its IPO in April 2021 and have been studying the business since 2019. We think the company has an interesting collection of premium, hard-to-value assets, but the principal driver of our interest was its ownership of the UFC, the largest and most prestigious promoter of global combat sports. Our swap from one stock to the other was essentially a decision on the preferred vehicle to continue our ownership in the UFC."
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Endeavor Group Holdings, Inc. (NYSE:EDR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 49 hedge fund portfolios held Endeavor Group Holdings, Inc. (NYSE:EDR) at the end of second quarter which was 52 in the previous quarter.
We discussed Endeavor Group Holdings, Inc. (NYSE:EDR) in another article and shared Merion Road Capital'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.
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Disclosure: None. This article is originally published at Insider Monkey.
