Is Seaport Entertainment (SEG) an Attractively Valued Stock? - InvestingChannel

Is Seaport Entertainment (SEG) an Attractively Valued Stock?

Plural Investing LLC, an investment advisor, released its Q3 2024 “Plural Partners Fund L.P” investor letter. A copy of the letter can be downloaded here. The fund reported a gross return of 9.4% and a net return of 9.2% in Q3. The firm’s goal is to deliver returns over five years significantly above that of global markets. The firm invests in companies that are worth substantially more than the price they are trading at. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Plural Investing highlighted stocks like Seaport Entertainment Group Inc. (AMEX:SEG), in the third quarter 2024 investor letter. Seaport Entertainment Group Inc. (AMEX:SEG) develops, owns, and operates a portfolio of entertainment and real estate assets. The one-month return of Seaport Entertainment Group Inc. (AMEX:SEG) was 5.26% and its shares gained 29.74% of their value over the last three months. On November 5, 2024, Seaport Entertainment Group Inc. (AMEX:SEG) stock closed at $28.04 per share with a market capitalization of $351.114 million.

Plural Investing stated the following regarding Seaport Entertainment Group Inc. (AMEX:SEG) in its Q3 2024 investor letter:

“When it comes to the spinoff area, rights offerings can be an extraordinary opportunity for enterprising investors like you. Rights offerings are obscure and often confusing…One telltale sign of a bargain offering price is the inclusion of oversubscription privileges” – Joel Greenblatt, You Can Be a Stock Market Genius

Seaport Entertainment Group Inc. (AMEX:SEG) is a spinoff with a rights issue that a key insider is oversubscribing to. We invested around $27/shr, the stock remains around the same price today, and we believe could be worth a multiple in three years’ time.

The company was recently spun out of Howard Hughes, a real estate developer that owns master planned communities across the United States. These communities are desirable because Howard Hughes’ control enables it to carefully design all properties and the speed at which those properties are supplied to the market, thereby making development less exposed to boom/bust cycles…” (Click here to read the full text)

Seaport Entertainment Group Inc. (AMEX:SEG) is not on our list of 31 Most Popular Stocks Among Hedge Funds. While we acknowledge the potential of Seaport Entertainment Group Inc. (AMEX:SEG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

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