Baron Funds, an investment management company, has released its third quarter 2023 investor letter “Baron Discovery Fund.” A copy of this can be downloaded here. The Baron Discovery Fund (the Fund) celebrated its 10th anniversary on September 30, 2023. Since inception, the fund has returned 195.3% on a cumulative basis (institutional shares), compared to the Russell 2000 Growth Index return of 91.6%. During the quarter, the fund returned -5.36% (institutional shares), compared to a return of -7.32% for the benchmark. The bond market provided the latest headwind to equity market performance this quarter. Additionally, please check out 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 its Q3 2023 investor letter. Live Nation Entertainment, Inc. (NYSE:LYV), headquartered in Beverly Hills, California, is a live entertainment company. On November 10, 2023, Live Nation Entertainment, Inc. (NYSE:LYV) stock closed at $87.52 per share. Live Nation Entertainment, Inc. (NYSE:LYV)’s one-month return was 3.51%, and its shares gained 14.11% of their value over the last 52 weeks. Live Nation Entertainment, Inc. (NYSE:LYV) has a market cap of $20.158 billion.
Baron Discovery Fund made the following comment regarding Live Nation Entertainment, Inc. (NYSE:LYV) in its third quarter 2023 investor letter:
“Liberty Media Corporation-Liberty Live is a tracking stock created on 8/4/2023 and represents Liberty Media Corporation’s holdings in Live Nation Entertainment, Inc. (NYSE:LYV) shares. These interests were previously attributed to Liberty SiriusXM and allocated to a newly created Liberty Live Group vehicle to reduce the complexity of the Liberty SiriusXM structure and make room for a possible combination with the underlying SiriusXM business. We believe the separation created some selling pressure on Liberty Live and resulted in 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 that allows us to own the underlying Live Nation business that we have followed and liked for years. Live Nation enjoys significant competitive advantages in the live entertainment industry due to its unique combination of concert promotion, ticket sales, venue management and sponsorship deals, creating a market share flywheel and margin structure that is difficult for competitors in any of these underlying sub-segments to achieve independent replication. In addition to the upside we see in Live Nation, we believe Liberty Live Group could eventually transition from a tracking stock to an asset-backed vehicle, paving the way for and enabling us to engage in a structural consolidation with Live Nation would conquer the current wide NAV discount.”
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Live Nation Entertainment, Inc. (NYSE:LYV) is not on our list of the 30 most popular stocks among hedge funds. According to our database, there were 41 hedge fund portfolios holding Live Nation Entertainment, Inc. (NYSE:LYV) at the end of the second quarter, up from 37 in the previous quarter.
We discussed Live Nation Entertainment, Inc. (NYSE:LYV) in another article and shared Longleaf Partners Fund’s views on the company. You can also find additional investor letters from hedge funds and other leading investors on our Q3 2023 Hedge Fund Investor Letters page.
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Disclosure: None. This article was originally published on Insider Monkey.