British investment firm Lindsell Train has further reduced its holdings in two prominent sports stocks, Manchester United and TKO Group, according to its latest year-end regulatory filing.
The London-based fund manager disclosed that it now holds 10.5% of Manchester United, or 5.78 million shares, marking a significant reduction from its peak in mid-2020 when it owned nearly twice that amount. In addition, Lindsell Train’s stake in TKO Group Holdings—formed by the September 2023 merger of WWE and UFC—has fallen below 5%, with the firm now owning 3.63 million shares, down from 5.9 million a year ago. This is the first time the company has reported its holdings in TKO Group, which has seen a remarkable 85% gain in value over the past year.
The disclosures were made as part of year-end ownership filings required by the U.S. Securities and Exchange Commission (SEC) for companies listed in the U.S. While Lindsell Train has been steadily trimming its positions in both companies over the years, the firm did not immediately comment on the changes.
A Shifting Investment Strategy
Fund managers Michael Lindsell and Nick Train, who gained a reputation for a Warren Buffett-style approach to investing, have previously built substantial stakes in both Manchester United and WWE, at one point owning around 20% of each company. However, their recent sell-offs come as the firm faces outflows from its funds. According to Citywire, Lindsell Train managed assets of £13.4 billion (around $17.8 billion) as of September, a 12% drop from earlier in the year and a sharp decline from its peak of £24.6 billion ($34 billion) in June 2021. The firm’s diminishing asset base has likely required it to liquidate holdings to meet investor redemptions.
Manchester United’s Struggles
Lindsell Train’s decision to reduce its position in Manchester United may reflect the club’s poor stock performance. Over the past year, the iconic English football club’s shares have fallen by 23%, closing at $16.28 on Monday. The stock had been buoyed by billionaire Jim Ratcliffe’s $33 per share purchase of a 25% stake in the club, but its price quickly dropped after the acquisition was completed. Lindsell Train’s stake in Manchester United, once valued at $226 million with 11.1 million shares, is now worth only $94 million.
TKO Group’s Gains
In contrast, TKO Group has been one of the standout performers in the sports stock market, with shares soaring 85% over the past year. The stock closed at $142.38 on Monday, bringing Lindsell Train’s remaining stake in TKO to $482 million—$37 million more than its value at the beginning of 2024. Despite selling part of its holdings, Lindsell Train has benefited from the significant appreciation in TKO Group’s share price.
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