Alternatively, several positions weighed on performance during the period. Entertainment holding company, Madison Square Garden Entertainment Corp. (MSGE, Financial) continued to weigh onrelative results in the quarter. Shares have been under pressure as investors unhappy with the acquisition of MSG Networks, Inc. cycle out of the name. Other investors remain on the sidelines over concerns related to the rising cost of the build-out for the Sphere arena in Las Vegas. Previously, we held positions in both companies prior to their combination and the recent transaction has not changed our thinking. Regarding the Sphere, we are confident in management’s ability to deliver excess returns on the project, much like they have done with The Garden in New York City and The Forum in Los Angeles. In our view, the underlying value of MSGE’s physical assets coupled with our conviction around their expertise make this an attractive opportunity. At current levels, MSGE is trading at a 47% discount to our estimate of private market value.
From John Rogers (Trades, Portfolio)' Ariel Fund third-quarter 2021 commentary.
