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O’Keefe Stevens’ Thoughts on Seaport Entertainment Group (SEG)

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O’Keefe Stevens’ Thoughts on Seaport Entertainment Group (SEG)

O’keefe Stevens Advisory, an investment advisory firm, released its third-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the Q3 letter, O’Keefe Stevens discussed its investment in Graftech (EAF). The firm admits that its investment thesis for the company was wrong and that the near-term viability of the business is in question. Even though this kind of loss is difficult, the firm hopes that the lessons learned will help avoid similar ventures in the future. For more information on the fund’s top picks in 2024, please check its top five holdings.

O’keefe Stevens Advisory 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 15.50%. On October 14, 2024, Seaport Entertainment Group Inc. (AMEX:SEG) stock closed at $30.57 per share with a market capitalization of $196.046 million.

O’keefe Stevens Advisory stated the following regarding Seaport Entertainment Group Inc. (AMEX:SEG) in its Q3 2024 investor letter:

“Seaport Entertainment Group Inc. (AMEX:SEG) – Another Nevada (partially) play we wrote about is Seaport Entertainment Group (SEG). A recent spinoff from Howard Hughes (HHH). We were, and continue to be, intrigued by the idea, as a $5B company spinning off a $300m hodgepodge of assets can create interesting trading dynamics. We visited the Tin Building in New York’s Seaport District in June. To say the building was stunning would be an understatement (then again, with a $200m remodel, it ought to be). Discussions with managers and servers provided interesting insights, detailed in our Substack post “Seaport Thoughts and Waffeling.” We passed on the idea, though we have a diligence trip to investigate the properties further in November. On the surface, the assets are highly likely to be worth more than the current market value. However, the Tin Building is incinerating cash and other near-term office vacancy headwinds, which have us worried this is cheap on an asset value and expensive on an NPV. A lesson we’ve learned from Five Point Holdings.”

Movie Studio and News Media Stocks List

Movie Studio and News Media Stocks List

A packed theater of moviegoers watching a blockbuster film produced by the entertainment company.

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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