Cooper Investors Global Equities Fund's Views on Its Largest 2025 Contributor: TKO Group Holdings (TKO)

Cooper Investors, an investment management firm, released its fourth-quarter 2025 investor letter for “Cooper Investors Global Equities Fund (Unhedged)”. A copy of the letter can be downloaded here. The portfolio returned -3.3% in Q4 2025, bringing the yearly returns to 2.6%. Currency fluctuations of approximately 5% weighed on the yearly performance. The portfolio returned 14.2% on an annualized basis over the past three years, compared to the MSCI AC World Index’s annualized return of 21.3% for the same period. The firm focuses on a long-term horizon to provide a risk-adjusted return above the market. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Cooper Investors Global Equities Fund highlighted TKO Group Holdings, Inc. (NYSE:TKO). TKO Group Holdings, Inc. (NYSE:TKO) is a sports and entertainment company. On February 10, 2026, TKO Group Holdings, Inc. (NYSE:TKO) stock closed at $214.11 per share. One-month return of TKO Group Holdings, Inc. (NYSE:TKO) was 2.95%, and its shares are up 21.21% over the past twelve months. TKO Group Holdings, Inc. (NYSE:TKO) has a market capitalization of $17.586 billion.

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

"TKO Group Holdings, Inc. (NYSE:TKO) is the owner and operator of the two leading combat sports content assets – the UFC and WWE. We wrote about TKO in our September 2024 Quarterly Report and provided updates in our June 2025 and September 2025 Quarterly Reports.

We have been investors in TKO for a little over one year over which time the share price has appreciated over 80%. 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).

Over the past year, TKO has renewed most of its important media deals (US UFC and WWE Premium Events) at rates well above previous deals. In addition, management continues to grow its sponsorship business, signing several new multi-year deals which we expect to become increasingly lucrative as the UFC’s and WWE’s growing exposure (via Paramount+ and Net ix respectively) becomes more of a factor…” (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. According to our database, 42 hedge fund portfolios held TKO Group Holdings, Inc. (NYSE:TKO) at the end of the third quarter, compared to 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 a list of best stocks to buy for investment. In its Q3 2025 investor letter, Cooper Investors Global Equities Fund expressed its optimism in TKO Group Holdings, Inc.'s (NYSE:TKO) media rights renewal. In addition, please check out our hedge fund investor letters Q4 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.