Baron Funds, an investment management company, released its “Baron Discovery Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. Baron Discovery Fund (the Fund) reached its 10-year anniversary on September 30, 2023. Since inception, the Fund has gained 195.3% (institutional stocks) on a cumulative basis, compared to the Russell 2000 Growth Index’s return of 91.6%. During the quarter, the fund returned -5.36% (institutional stocks), compared to a return of -7.32% for the benchmark. The bond market was the latest headwind to stock market developments in the quarter. Additionally, check the fund’s top five holdings to know the best picks in 2023.
Baron Discovery Fund highlighted stocks like Live Nation Entertainment, Inc. (NYSE:LYV) in the investor letter in Q3 2023. Live Nation Entertainment, Inc. (NYSE:LYV), headquartered in Beverly Hills, California, is a live entertainment company. On November 10, 2023, Live Nation Entertainment, Inc. closed. (NYSE:LYV) stock at $87.52 a share. One Month Returns for Live Nation Entertainment, Inc. (NYSE:LYV) was 3.51% and its shares increased 14.11% of their value over the past 52 weeks. Live Nation Entertainment, Inc. (NYSE:LYV) has a market cap of $20.158 billion.
Baron Discovery Fund made the following comment on Live Nation Entertainment, Inc. (NYSE:LYV) in its Q3 2023 investor letter:
“Liberty Media Corporation-Liberty Live is a tracker stock created on 8/4/2023 that represents Liberty Media Corporation’s holdings in Live Nation Entertainment, Inc. (NYSE:LYV) shares. These holdings were previously attributed to Liberty SiriusXM and rewritten into a newly created Liberty Live Group vehicle to reduce the complexity of the Liberty SiriusXM structure and make room for its potential combination with the underlying SiriusXM business. We believe the separation created some selling pressure on Liberty Live and created an attractive discount of over 40% to the underlying value of its Live Nation holdings, and we took advantage of this discount to build a position. Liberty Live Group is a small-cap vehicle through which we can own the underlying Live Nation business that we’ve tracked and liked for years. Live Nation has significant competitive advantages in the live entertainment industry due to its unique combination of concert promotion, ticketing, venue management and sponsorship businesses, which creates a market share flywheel and margin structure that is difficult for competitors in any of these underlying sub-segments to replicate independently . In addition to the upside we see in Live Nation, we believe Liberty Live Group could ultimately transition from a tracking stock to an asset-backed vehicle, which would pave the way for a structural consolidation with Live Nation and allow us to to capture the current broad NAV discount.”
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Live Nation Entertainment, Inc. (NYSE:LYV) is not on our list of 30 most popular stocks among hedge funds. According to our database, 41 hedge fund portfolios held Live Nation Entertainment, Inc. (NYSE:LYV) at the end of the second quarter, which was 37 in the previous quarter.
We discussed Live Nation Entertainment, Inc. (NYSE:LYV) in another article and shared Longleaf Partners Fund’s view on the company. Additionally, please check out our Hedge Fund Investor Letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article was originally published on Insider Monkey.
