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Cinemark Holdings (CNK), A Top Detractor in Bernzott Capital’s Portfolio

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Jose Karlo Mari Tottoc
·3 min read
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Bernzott Capital Advisors, an investment management firm, published its fourth quarter 2020 investor letter – a copy of which can be downloaded here. A return of 24.41% was recorded by the fund in the fourth quarter of 2020, below its R2000V and R2500V benchmarks that delivered a 33.36% and 28.51% return respectively in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Bernzott Capital Advisors, in their Q4 2020 investor letter, mentioned Cinemark Holdings, Inc. (NYSE: CNK) and emphasized their views on the company. Cinemark Holdings, Inc. is a Plano, Texas-based movie theater chain that currently has a $2.5 billion market capitalization. Since the beginning of the year, CNK delivered a 19.01% return, extending its 12-month gains to 78.16%. As of March 23, 2021, the stock closed at $20.72 per share.

Here is what Bernzott Capital Advisors has to say about Cinemark Holdings, Inc. in their Q4 2020 investor letter:

"Cinemark (CNK): As discussed in our 3Q commentary, Cinemark was sold in early 2Q as social distancing and potentially enduring changes to content distribution (e.g. collapsing theatrical windows and expanding streaming distribution) significantly clouded the outlook for this movie theater operator's earnings."

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Our calculations show that Cinemark Holdings, Inc. (NYSE: CNK) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Cinemark Holdings, Inc. was in 26 hedge fund portfolios, compared to 25 funds in the third quarter. CNK delivered a 24.97% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

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