Cinemark Becomes Marathon Asset Management's Second-Largest Bet With 300,000-Share Purchase

A prominent investment fund has made a notable move in the entertainment sector. Marathon Asset Management LP recently established a major new position in Cinemark Holdings (NYSE: CNK), acquiring 300,000 shares valued at approximately $8.41 million as of late September 2025. The timing of this acquisition raises interesting questions about institutional conviction in the theatrical exhibition industry.

Understanding the Scale of This Investment

For Marathon Asset Management, this represents far more than a routine portfolio addition. The 300,000-share position accounts for 11.19% of the fund’s total 13F reportable assets under management, positioning Cinemark as the fund’s second-most significant equity holding. With a modest portfolio containing fewer than 20 positions overall, this allocation signals meaningful confidence in the company’s direction.

The fund manages approximately $75.12 million in reportable U.S. equity securities. Following this transaction, Marathon’s top holdings now include GrafTech International leading at $27.1 million (36.1% of AUM), followed by Cinemark at $8.4 million, then UnitedHealth Group at $4.3 million, John Hancock High Yield ETF at $3.3 million, and Advanced Micro Devices at $3.2 million.

Market Conditions and Valuation Context

The Cinemark acquisition occurred against a backdrop of challenging market performance for the cinema operator. As of mid-November 2025, CNK shares traded at $29.59, reflecting a 6.69% decline over the preceding twelve months—a significant underperformance relative to the S&P 500, lagging by 18.81 percentage points.

Why an Institutional Manager Is Betting on Movie Theaters

The decision to establish such a substantial position in Cinemark appears grounded in the company’s recent operational improvements. Cinemark operates the Americas’ largest multiplex theater network, running 5,868 screens across the United States, South America, and Central America. The company derives revenue through box office ticket sales, concessions operations, and advertising placements within its theaters.

Despite rising cost pressures, Cinemark demonstrated profitability through the first three quarters of 2025, reporting net income of $107 million. While this represented a decline from the prior year period, the company achieved a significant milestone by eliminating its remaining pandemic-related convertible debt obligations. Additionally, the company authorized a $300 million share repurchase program and increased its quarterly dividend by 12.5%—actions that typically reflect management confidence in future cash generation.

The Investment Thesis Behind the Position

Marathon’s substantial allocation suggests the fund manager believes in sustained consumer spending on theatrical experiences. The combination of debt elimination, capital returns to shareholders through dividends and buybacks, and maintained profitability appears to have convinced this institutional investor that Cinemark represents value at current levels.

With a market capitalization of $3.43 billion and trailing twelve-month revenue of $3.15 billion, Cinemark maintains a meaningful footprint in the entertainment sector. For an investment firm managing a relatively concentrated portfolio, dedicating over 11% of assets to a single holding requires conviction that the investment thesis will play out favorably.

Key Metrics at a Glance

Marathon’s 300,000-share commitment to Cinemark reflects an institutional bet that the theatrical exhibition industry’s fundamentals—particularly for well-capitalized operators—warrant investor attention despite recent market skepticism.