Shares of The Madison Square Garden Co. (MSG, Financial), the spinout from Cablevision, which owns professional sports teams (the New York Knicks and the New York Rangers), venues (Madison Square Garden and Radio City Music Hall), and cable networks (MSG and Fuse), reported strong results and its stock rose 30% in the quarter. The NHL strike was settled and the Knicks continued their winning ways, which led to strong attendance at the games and increased advertising at the network. The company is coming to the end of its billion dollar renovation of the Garden, which has proven to provide good returns, and we expect shortly will have lots of free cash flow. The stock has tripled since its spinout, and we believe has more upside based both on a reasonable valuation of future cash flow and on asset value.
From Baron Funds’ first quarter 2013 commentary.
From Baron Funds’ first quarter 2013 commentary.
