MHR FUND MANAGEMENT LLC recently filed their 13F report for the third quarter of 2022, which ended on 2022-09-30.
The 13F report details which stocks were in a guru’s equity portfolio at the end of the quarter, though investors should note that these filings are limited in scope, containing only a snapshot of long positions in U.S.-listed stocks and American depository receipts as of the quarter’s end. They are not required to include international holdings, short positions or other types of investments. Still, even this limited filing can provide valuable information.
MHR Fund Management LLC is an investment management firm based out of New York City, New York. The company was originally established in 1996 by founder Mark H. Rachesky, who is still with the company today acting as its President and Investment Chief. MHR Fund Management utilizes a fundamental methodology to make its investment decisions, allocating its assets primarily in the distressed securities of mid cap companies. The firm describes its approach as being “highly differentiated, control-focused, private equity” and actively invests, seeking to “exert control or significant influence on its portfolio companies.” The company invests in the fixed income and public equity markets within the United States, allocating its assets across a variety of sectors. MHR Fund Management invests most heavily in the consumer discretionary sector, which alone makes up approximately two thirds of its entire asset allocations, and also invests in the information technology, making up another fifth of its allocations, and industrials sectors, among other sectors to a lesser degree, in order of decreasing allocation. The company keeps its holdings for an average of 22 quarters and, in the most recent quarter, MHR Fund Management had a turnover rate of 12.5%. MHR Fund Management’s top holding in Lions Gate Entertainment Corp makes up the bulk of its allocated assets at 64.8% of its total. The company operates with 22 employees of which 16 are investment professionals. MHR Fund Management holds over $6.1 billion in total assets under management spread across 14 accounts, all of which are discretionary. Both of the firm’s total number of accounts and total assets under management have been increasing in recent years with its total managed assets growing from $5.1 billion back in 2012 to its current amount. The company currently caters solely to pooled investment vehicles and takes fees in the form of a percentage of assets and performance based fees.
As of the latest 13F report, the guru’s equity portfolio contained 29 stocks valued at a total of $532.00Mil. The top holdings were LGF.A(26.88%), TSAT(26.46%), and LGF.B(19.72%).
According to GuruFocus data, these were MHR FUND MANAGEMENT LLC’s top five trades of the quarter.
Scorpio Tankers Inc
The guru sold out of their 66,000-share investment in NYSE:STNG. Previously, the stock had a 0.33% weight in the equity portfolio. Shares traded for an average price of $39.82 during the quarter.
On 11/15/2022, Scorpio Tankers Inc traded for a price of $48.1 per share and a market cap of $2.68Bil. The stock has returned 187.52% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 5 out of 10.
In terms of valuation, Scorpio Tankers Inc has a price-earnings ratio of 8.95, a price-book ratio of 1.26, a EV-to-Ebitda ratio of 6.92 and a price-sales ratio of 2.49.
The price-to-GF Value ratio is 1.55, earning the stock a GF Value rank of 1.
Madison Square Garden Sports Corp
The guru established a new position worth 5,001 shares in NYSE:MSGS, giving the stock a 0.13% weight in the equity portfolio. Shares traded for an average price of $155.21 during the quarter.
On 11/15/2022, Madison Square Garden Sports Corp traded for a price of $149.95 per share and a market cap of $3.63Bil. The stock has returned -22.33% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 4 out of 10.
In terms of valuation, Madison Square Garden Sports Corp has a price-earnings ratio of 73.43, a EV-to-Ebitda ratio of 50.79 and a price-sales ratio of 4.41.
The price-to-GF Value ratio is 0.50, earning the stock a GF Value rank of 4.
Apollo Global Management Inc
During the quarter, MHR FUND MANAGEMENT LLC bought 99,000 shares of NYSE:APO for a total holding of 679,000. The trade had a 0.7% impact on the equity portfolio. During the quarter, the stock traded for an average price of $54.53.
On 11/15/2022, Apollo Global Management Inc traded for a price of $65.17 per share and a market cap of $37.37Bil. The stock has returned -11.96% over the past year.
GuruFocus gives the company a financial strength rating of 4 out of 10 and a profitability rating of 8 out of 10.
In terms of valuation, Apollo Global Management Inc has a EV-to-Ebitda ratio of 13.46 and a price-sales ratio of 4.10.
The price-to-GF Value ratio is 1.44, earning the stock a GF Value rank of 1.
Property Solutions Acquisition Corp II
The guru established a new position worth 100,000 shares in NAS:PSAGU, giving the stock a 0.14% weight in the equity portfolio. Shares traded for an average price of $9.82 during the quarter.
On 11/15/2022, Property Solutions Acquisition Corp II traded for a price of $9.96 per share and a market cap of $0.00Mil. The stock has returned -0.10% over the past year.
GuruFocus gives the company a financial strength rating of 9 out of 10 and a profitability rating of 2 out of 10.
In terms of valuation, Property Solutions Acquisition Corp II has a price-earnings ratio of 9999.00.
Scholastic Corp
MHR FUND MANAGEMENT LLC reduced their investment in NAS:SCHL by 91,919 shares. The trade had a 0.3% impact on the equity portfolio. During the quarter, the stock traded for an average price of $41.41.
On 11/15/2022, Scholastic Corp traded for a price of $39.85 per share and a market cap of $1.37Bil. The stock has returned 5.33% over the past year.
GuruFocus gives the company a financial strength rating of 8 out of 10 and a profitability rating of 6 out of 10.
In terms of valuation, Scholastic Corp has a price-earnings ratio of 24.88, a price-book ratio of 1.18, a EV-to-Ebitda ratio of 9.24 and a price-sales ratio of 0.86.
The price-to-GF Value ratio is 1.03, earning the stock a GF Value rank of 5.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
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