Ken Griffin, the renowned hedge fund manager, has significantly increased his stake in Sphere Entertainment, now holding 5.3% according to a recent SEC filing. Griffin, through his investment firm Citadel, previously owned 1.6% of the company but has acquired an additional 900,000 shares since April 1, bringing his total to 1.5 million shares.
This strategic move coincides with a similar investment by another hedge fund heavyweight, Steve Cohen. Last month, Cohen, who also owns the New York Mets, revealed a new 5.5% stake in Sphere Entertainment via his hedge fund Point72 Asset Management. Cohen’s investment aligns him with fellow New Yorker Jim Dolan, whose family retains voting control of Sphere, alongside ownership of the New York Knicks and New York Rangers.
The Dolan family holds 8.5 million shares of Sphere Entertainment, with their sports teams owned through the publicly traded Madison Square Garden Sports. Other major institutional investors in Sphere include Ariel Investments, Vanguard Group, and Jericho Capital Asset Management. Dolan recently extended his contracts for another three years to oversee Sphere, MSG Sports, and MSG Entertainment.
Ken Griffin, who founded Citadel in 1990, is recognised as one of the most successful investors globally. As CEO of the Miami-based Citadel, he oversees $63 billion in investment capital. With a personal net worth of $37.6 billion, Griffin ranks as the 42nd richest person in the world according to Forbes.
Last year, Griffin's earnings from investment fees and personal capital gains totalled $2.6 billion, placing him third in Institutional Investor’s annual list of highest-paid hedge fund managers, just ahead of David Tepper ($2.3 billion) and Steve Cohen ($1.6 billion).
In 2022, Griffin also engaged in discussions with Stephen Ross regarding a potential minority stake acquisition in the Miami Dolphins, Hard Rock Stadium, and the F1 Miami Grand Prix, although no deal was finalised.
The Sphere, a $2.3 billion entertainment venue, opened in September and has impressed visitors with its stunning visual effects. U2 inaugurated the venue with a 40-concert series, followed by performances from Phish, Dead & Company, and the Eagles. Additionally, the Sphere hosted the NHL Draft last month and will welcome UFC 306 in late September.
The primary revenue driver for the Sphere is the Sphere Experience, featuring the multi-sensory show "Postcards from Earth," which generated $100.5 million from 257 performances in the most recent quarter. Sphere Entertainment also owns MSG Networks.
Sphere Entertainment's stock saw a 4% rise on Monday and has increased by 32% year-to-date, reflecting strong investor confidence and market performance.