TKO Holdings (TKO): Top Positive Contributor to Cooper Investors Global Equities Fund's 12-Month Returns

Cooper Investors, an investment management firm, released its “Cooper Investors Global Equities Fund (Unhedged)” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned -0.04% in the third quarter, compared to a 6.42% return for the MSCI AC World Index Net Divs in Australian Dollars. However, the fund returned a rolling 12-month return of 18.0% post fees. Since the portfolio structure is primarily not correlated with the index, its returns should not move in line with the index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Cooper Investors Global Equities Fund highlighted stocks such as TKO Group Holdings, Inc. (NYSE:TKO). TKO Group Holdings, Inc. (NYSE:TKO) is a sports and entertainment company. The one-month return for TKO Group Holdings, Inc. (NYSE:TKO) was 12.86%, and its shares gained 44.73% over the last 52 weeks. On December 05, 2025, TKO Group Holdings, Inc. (NYSE:TKO) stock closed at $202.22 per share, with a market capitalization of $16.61 billion.

Cooper Investors Global Equities Fund stated the following regarding TKO Group Holdings, Inc. (NYSE:TKO) in its third quarter 2025 investor letter:

"TKO Group Holdings, Inc. (NYSE:TKO) is the owner and operator of the two leading combat sports content assets – the Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE). We wrote about TKO in our September 2024 Quarterly Report and provided an update in our June 2025 Quarterly Report.

We have been investors in TKO for a little over one year. Our investment proposition is based on the increased demand for sports media rights from traditional broadcasters/cable as well as global streaming platforms (Netflix, YouTube, Amazon, Apple). These media companies see live sport as crucial to maintain and grow viewer numbers and/or subscribers. Given the year-round volume and flexibility of both the WWE and UFC, TKO’s assets are well positioned to benefit from this trend. In addition, TKO benefits from a powerful flywheel where in addition to media rights, it monetises its content via Sponsorships (e.g. Monster Energy on the Octagon) and Live Events (with site fees paid by local governments and ticket sales).

During the quarter, TKO renewed its most important media deal being the US UFC rights. Renewals of this significance are seeking to maximise two criteria absolute dollar value and the reach of the media partner, which then drives other parts of the monetization flywheel. TKO signed a seven year, $7.7Bn deal with Paramount+, which on an annual basis is more than double the current deal with ESPN..." (Click here to read the full text)

TKO Group Holdings, Inc. (NYSE:TKO) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held TKO Group Holdings, Inc. (NYSE:TKO) at the end of the third quarter, which was 48 in the previous quarter. While we acknowledge the potential of TKO Group Holdings, Inc. (NYSE:TKO) 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 the best short-term AI stock.

In another article, we covered TKO Group Holdings, Inc. (NYSE:TKO) and shared the list of stocks Jim Cramer discussed. In its Q2 2025 investor letter, Cooper Investors Global Equities Fund shared that TKO Group Holdings, Inc. (NYSE:TKO) is experiencing strong growth and exploring new revenue opportunities. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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