Multiple Factors Lifted MGM Resorts International (MGM) in Q2

Soumya Eswaran Mon, July 13, 2026 at 10:41 AM EDT 3 min read **

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Longleaf Partners, managed by Southeastern Asset Management**, released its second-quarter 2026 investor letter for its "Partners Fund". A copy of the letter can be downloaded here. The letter states that the portfolio holdings are attractive now based on both P/V and P/FCF metrics. However, the Fund returned 3.87% in the quarter, significantly lagging the S&P 500's 15.20% return and the Russell 1000 Value Index's 13.87% gain. An underweight in Information Technology (IT) primarily contributed to the underperformance. The market's preference for overvalued stocks in Industrials and other sectors led to inflated multiples, overshadowing real earnings power. The Firm's investment approach focuses on median, unweighted multiples, prioritizing growth in free cash flow per share, the potential for multiple expansion, and strategic initiatives. In addition, please check the Fund's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, Longleaf Partners Fund highlighted MGM Resorts International (NYSE:MGM). MGM Resorts International (NYSE:MGM) is a leading US-based gaming, hospitality and entertainment company. On July 10, 2026, MGM Resorts International (NYSE:MGM) closed at $46.88 per share, reflecting a market capitalization of $11.99 billion. MGM Resorts International (NYSE:MGM) posted a one-month return of -3.58%, while its shares gained 23.01% over the past 52 weeks.

Longleaf Partners Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its Q2 2026 investor update:

** "People Inc. (formerly IAC Inc.) and MGM Resorts International** (NYSE:MGM) – The related group of digital and print publisher People Inc. and hospitality and entertainment company MGM Resorts both contributed positively during the quarter. The main piece of news was the announcement of People Inc.'s bid for control of MGM. We believe that this can be a good way to grow and realize value per share at both companies, but of course the details will matter. MGM appreciated to the offer price and has fluctuated as the board evaluates the bid. Earlier in the quarter, People Inc. announced their decision to streamline the holding company to only focus on the People Inc. digital publishing business and MGM. This will lead to a decrease in corporate costs and ultimately a monetization of their other assets. MGM reported a good quarter where Las Vegas revenues grew for the first time in almost two years due to a strong convention calendar. Inferior peer Caesars announced it was going private, which can be another positive for MGM on multiple levels."

** Story Continues CBRE Cuts MGM Resorts (MGM) to Hold as People Inc. Pursues Buyout Proposal MGM Resorts International (NYSE:MGM) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 57 hedge fund portfolios held MGM Resorts International (NYSE:MGM) at the end of the first quarter, up from 45 in the previous quarter. While we acknowledge the potential of MGM Resorts International (NYSE:MGM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock**.

In another article, we covered MGM Resorts International (NYSE:MGM) and shared a bullish thesis on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.