Marathon Asset Management Bets Big on Cinemark with Substantial New Cinema Stock Position

Marathon Asset Management LP has made a bold move in the entertainment sector, deploying $8.41 million to establish a fresh position of 300,000 shares in Cinemark Holdings (NYSE:CNK). According to a Securities and Exchange Commission filing released on November 17, 2025, this new stake has quickly become the fund’s second-largest equity holding, commanding 11.19% of its $75.12 million in reportable U.S. equity holdings.

The Portfolio Shift: Why Cinemark Now?

The timing of this investment reveals something interesting about how Marathon views the market. The fund’s portfolio remains relatively compact, holding fewer than 20 positions across equities, ETFs, and options. Yet carving out over 10% of assets for a single new holding signals conviction.

What’s the thesis? Marathon appears to believe that audiences will keep heading to the multiplex despite streaming’s dominance. More specifically, the fund seems convinced that Cinemark, one of the largest motion picture exhibitors operating across the United States, South America, and Central America, offers value at current levels.

As of November 17, Cinemark shares traded at $29.59, reflecting a 6.69% decline over the past twelve months. That underperformance against the S&P 500 (down 18.81 percentage points relative to the index) may have presented the opportunity Marathon was waiting for.

How Cinemark Stacks Against Marathon’s Other Holdings

Marathon’s capital allocation tells us what matters most to this fund manager:

• GrafTech International: $27.1 million (36.1% of assets)
• Cinemark: $8.4 million (11.2% of assets) — the new position
• UnitedHealth Group: $4.3 million (5.8% of assets)
• John Hancock High Yield ETF: $3.3 million (4.4% of assets)
• Advanced Micro Devices: $3.2 million (4.3% of assets)

The Cinemark position immediately ranks as the fund’s second-most significant bet, trailing only its energy materials play in GrafTech.

The Case for Cinema in 2025

Why would a fund manager take on this exposure? Cinemark’s recent financial performance provides clues. The company generated $3.15 billion in trailing twelve-month revenue and posted $154.8 million in net income. More importantly, the business model hinges on generating revenue from multiple streams: box office ticket sales, premium concessions, and advertising placements across its vast screen footprint.

The company operates 5,868 screens across the Americas—a massive infrastructure asset that continues to monetize through traditional cinema experiences.

Signs of Financial Strength

Several developments suggest Cinemark is turning a corner:

Through the first nine months of 2025, the company reported $107 million in net income, despite cost pressures. While this represents a decline from the prior year period, management eliminated its remaining pandemic-related convertible note debt—removing a significant financial burden.

In the third quarter, Cinemark’s board authorized a fresh $300 million share repurchase program and boosted its quarterly dividend by 12.5%. These capital allocation decisions typically indicate management confidence in future cash generation.

Market Context and Valuation

With a market capitalization of $3.43 billion, Cinemark remains a mid-cap entertainment play. The stock’s recent weakness may reflect broader concerns about consumer discretionary spending or ongoing questions about theatrical exhibition’s long-term viability.

Marathon’s conviction suggests the fund believes current pricing offers a margin of safety for patient capital. The position stakes a claim that movie-going—despite cord-cutting and streaming proliferation—retains cultural and commercial relevance, particularly in Cinemark’s diversified geographic footprint.

What This Signals About Marathon’s Strategy

The decision to establish a position representing over one-tenth of a concentrated portfolio indicates disciplined conviction. This isn’t a token stake or portfolio diversification play. It represents a meaningful thesis about sector recovery and company-specific strength.

For investors watching institutional money flows, Marathon’s move into Cinemark deserves attention—not necessarily as a direct buy signal, but as evidence that value investors continue to see opportunity in unfashionable sectors when fundamentals improve and sentiment remains skeptical.