Exploring Studio City International Holdings Limited (MSC) Investor Profile: Who’s Buying and Why?

You're looking at Studio City International Holdings Limited (MSC) and wondering who is actually buying this Macau recovery story, and more importantly, why they are stepping in now. Honestly, the money is following the mass-market rebound, which is why institutional ownership stands at nearly 20.42% as of November 2025. The latest Q3 2025 results show exactly what these seasoned funds are betting on: a significant jump in operational efficiency and a narrowing path to profitability. Total operating revenues hit US$182.5 million, driven by a stronger mass-market gaming segment that pushed casino contract revenue to US$77.3 million. That's a clear signal. Plus, the Adjusted EBITDA soaring to US$78.1 million shows a powerful operational leverage kicking in, even as the net loss narrowed to US$18.6 million. Are the big players seeing a value play in a high-debt, recovering market, or is this a defintely calculated bet on the full return of Chinese tourism? Let's dive into the filings to see which funds are making the biggest moves and what their ultimate price target looks like.

Who Invests in Studio City International Holdings Limited (MSC) and Why?

If you are looking at Studio City International Holdings Limited (MSC), you are defintely looking at a high-risk, high-reward Macau recovery play. The investor base is dominated by a major corporate parent and sophisticated institutional money, attracted by the strong operational turnaround in 2025 but realistic about the massive debt load.

The core takeaway is that this is not a stock for income-focused investors; it is a capital appreciation bet on the continued rebound of Macau's mass-market tourism, leveraging the company's unique non-gaming assets.

Key Investor Types: A Concentrated Ownership Structure

The ownership of Studio City International Holdings Limited is highly concentrated, meaning the public float-the shares available for retail investors and non-major institutions-is relatively small. This structure is typical for a subsidiary of a larger, publicly-traded gaming group.

• Corporate/Insider Majority: The majority owner is Melco Resorts & Entertainment Limited (MLCO), which controls the company and also acts as the gaming operator. This relationship is crucial because Melco's strategy heavily influences MSC's operations and financial health. Insider ownership stands at approximately 24.13% of the float.
• Institutional Investors: These are the large asset managers, pension funds, and mutual funds. Their ownership accounts for roughly 20.42% of the float. Activity here is mixed, indicating a debate on the stock's near-term value. For instance, in Q1 2025, one major institution, UBS Group AG, significantly increased its position by 549.2%, while others, like Invesco Ltd., exited their positions entirely.
• Hedge Funds and Private Equity: This group includes distressed debt and special situation funds. A notable holder is Silver Point Capital L.P., which allocated 8.10% of its portfolio to MSC as of September 30, 2025. Their presence signals a focus on the company's debt restructuring and potential for a deep-value recovery.
• Retail Investors: The remaining shares are held by individual investors. Given the high volatility and negative earnings, this group is likely composed of speculative traders and long-term believers in the Macau growth story.

Investment Motivations: Betting on a Turnaround

Investors are drawn to Studio City International Holdings Limited not for stability, but for the potential for a significant price re-rating as the Macau market recovers and the company's operational performance improves. The investment thesis is centered on growth, not income.

Here's the quick math on the 2025 recovery: Total operating revenues for the third quarter of 2025 hit US$182.5 million, up from US$174.6 million a year ago. This top-line growth is translating into operational efficiency, with Adjusted EBITDA rising to US$78.1 million in Q3 2025, compared to US$68.2 million in Q3 2024.

The company is focused on its integrated resort model, using non-gaming attractions like the world's first figure-8 Ferris wheel to draw in a wider range of tourists, which is key under the new Macau gaming law framework. You can read more about the company's operational model here: Studio City International Holdings Limited (MSC): History, Ownership, Mission, How It Works & Makes Money.

Investment Strategies: High-Beta Recovery Play

The high debt load-total net debt was US$2.06 billion as of September 30, 2025-means the stock is a high-beta investment, moving sharply with changes in Macau's economic outlook. This environment fosters two primary strategies among non-parent investors.

• Long-Term Holding (Turnaround Value): These investors, including deep-value funds, are betting on a multi-year recovery that allows the company to service and eventually deleverage its balance sheet. They are willing to stomach the negative Price-to-Earnings (P/E) ratio of -10.96 because they believe future earnings will normalize, making today's price look cheap. They are focused on the narrowing net loss, which was US$18.6 million in Q3 2025, a sign of progress.
• Short-Term Trading (Momentum/Speculative): Given the high volatility (5.47% price volatility over the 30 days leading up to mid-November 2025) and the stock's sensitivity to Macau visitor numbers, short-term traders look for quick gains based on earnings beats or positive tourism news. The mixed institutional activity-some adding, some reducing-shows active trading is happening. This strategy views MSC as a pure levered play on Macau's recovery.

What this estimate hides is the risk of regulatory changes or another global economic shock, which could quickly reverse the positive momentum. The debt is a constant headwind, requiring approximately US$130 million annually just for debt service. That's a huge drag on potential shareholder returns.

Institutional Ownership and Major Shareholders of Studio City International Holdings Limited (MSC)

You want to know who is buying Studio City International Holdings Limited (MSC) and why. The direct takeaway is that MSC is a controlled entity, not a free-floating stock, so the biggest buyer is its parent company. Beyond that, the institutional interest is concentrated in a few key funds, and they are watching the company's ability to service its substantial debt load.

As of November 2025, the total institutional ownership of Studio City International Holdings Limited stands at approximately 20.42% of the shares outstanding. This is a relatively low figure for a New York Stock Exchange-listed company with a market capitalization of roughly $748.21 million, which tells you that the majority of the company is held by a strategic, corporate entity.

Top Institutional Investors: Strategic and Financial

When you look at the shareholder base, you need to separate the strategic parent from the financial institutions (like hedge funds and asset managers). The strategic owner dictates the company's direction, while the financial owners are betting on the stock's market performance.

• The Strategic Majority Owner: Melco Resorts & Entertainment Limited (MLCO) is the majority owner of Studio City International Holdings Limited. This relationship is crucial, as Melco Resorts is the one driving the strategic repositioning, such as the transfer of VIP rolling chip operations to its City of Dreams property in late 2024. This means the company's long-term strategy is tied to Melco's broader Macau vision, not solely to the whims of the public market.
• The Largest Financial Investor: The most significant financial institutional investor is Silver Point Capital L.P. As of their September 30, 2025, 13F filing, Silver Point held 28,640,414 shares of MSC. This position was valued at approximately $111,697.6 thousand and represented a substantial 14.870% of the company's shares outstanding. That's a huge, concentrated bet for a single hedge fund.

Changes in Ownership: A Stable but Cautious Stance

Institutional ownership has remained relatively stable, but the latest data shows a cautious stance from key players. For the quarter ending September 30, 2025, Silver Point Capital L.P. showed a minor reduction in their stake, decreasing their share count by -0.14%. This isn't a massive sell-off, but it's defintely not a sign of aggressive accumulation either. Here's the quick math: a slight trim from the largest financial holder signals they aren't fully convinced the stock has bottomed or that the near-term catalysts are strong enough for a major increase.

This stability is typical for a company with a strong parent like Melco, but the financial institutions are still trading around the edges based on the operating environment. You can read more about the company's foundation and mission here: Studio City International Holdings Limited (MSC): History, Ownership, Mission, How It Works & Makes Money.

Impact of Institutional Investors: Focus on Debt and Fair Value

The role of these large investors is twofold: strategic oversight and market price discovery. Melco Resorts & Entertainment Limited's majority control means they set the corporate strategy, focusing on integrating Studio City's operations into their larger Macau portfolio. For instance, the strategic shift to focus on premium mass and mass operations is a direct result of this parental control.

The financial institutions, like Silver Point Capital L.P., play the role of price setters. They are the ones continually driving the stock price toward what they calculate as its 'fair value.' Their primary concern boils down to the balance sheet. Despite Q2 2025 operating revenues hitting US$190.1 million and the net loss narrowing to US$3.7 million, the company still carries a heavy total debt load of approximately $2.16 billion as of June 30, 2025. The institutional money is looking for clear evidence that the recovery in Macau's gross gaming revenue (GGR) can translate into enough free cash flow to materially reduce that debt.

A bullish sentiment from institutional investors generally correlates with higher stock returns, so their buying or holding signals confidence in the long-term recovery of the Macau market and the success of Studio City's Phase 2 expansion. But still, the high debt and intense competition from other mega-resorts like Venetian Macao keep a lid on aggressive buying. Your next step should be to look at the Q3 2025 cash flow statement to see if they made a dent in that $2.16 billion debt.

Key Investors and Their Impact on Studio City International Holdings Limited (MSC)

The investor profile for Studio City International Holdings Limited (MSC) is defintely not a typical public company setup. You need to look past the retail float, because the strategic direction is dictated by one dominant player: Melco Resorts & Entertainment Limited.

Melco Resorts & Entertainment Limited (MLCO) is the majority owner, making Studio City International Holdings Limited (MSC) a controlled entity. While the exact percentage fluctuates with capital raises and conversions, Melco Resorts & Entertainment Limited consistently holds a majority stake, last reported around 54.9% of the promoter company. This means their influence is absolute; they control the board and all major strategic decisions, like the recent shift to focus on premium mass market operations in Macau.

The Anchor: Melco Resorts & Entertainment Limited's Strategic Control

Melco Resorts & Entertainment Limited's ownership means that any investment decision in Studio City International Holdings Limited (MSC) is essentially a bet on Melco's broader Macau strategy. Here's the quick math: with a majority stake, Melco Resorts & Entertainment Limited dictates capital allocation and operational changes.

• Strategic Repositioning: Melco Resorts & Entertainment Limited moved Studio City's VIP rolling chip operations to City of Dreams in late October 2024, focusing Studio City International Holdings Limited (MSC) entirely on the higher-margin mass market and non-gaming segments.
• Financial Support: They are the ultimate backstop. This relationship is critical given the company's total debt, net of unamortized deferred financing costs, stood at US$2.16 billion at the end of the second quarter of 2025.

If you want to understand the company's core financial health, you need to see how the Macau recovery is impacting their cash flow, which you can read about in Breaking Down Studio City International Holdings Limited (MSC) Financial Health: Key Insights for Investors.

Notable Institutional Investors: The Credit-Focused Crowd

Beyond the parent company, the largest non-parent institutional holder is the credit-focused hedge fund Silver Point Capital LP. They are a special situations and distressed debt investor, which tells you a lot about the nature of this stock.

As of a recent filing, Silver Point Capital LP held a significant stake, representing approximately 14.9% of the Class A Ordinary Shares. This is not passive money; Silver Point Capital LP's involvement is often tied to the capital structure (debt and equity) of a company, suggesting they are betting on a successful restructuring or a significant improvement in the company's ability to manage its high debt load.

Other institutional holders are smaller but still notable, reflecting diverse investment theses:

These investors are buying into the recovery story, but they are also acutely aware of the leverage. That's a classic risk-reward trade-off.

Recent Moves and the Recovery Thesis

In the first quarter of 2025 (Q1 2025), we saw some telling institutional moves that map directly to the improving financial results. The market is reacting to the fact that the post-lockdown recovery is finally hitting the bottom line.

• UBS GROUP AG significantly increased its position, adding 25,828 shares, a massive +549.2% increase in its holding.
• Conversely, WALLEYE CAPITAL LLC exited entirely, removing 65,000 shares, a -100.0% change.

The buying interest is likely fueled by the fact that the net loss is shrinking. For the third quarter of 2025, the net loss attributable to Studio City International Holdings Limited was US$18.6 million, a notable improvement from the US$21.0 million loss in the third quarter of 2024. Plus, the Adjusted EBITDA for Q3 2025 hit US$78.1 million, up from US$68.2 million in Q3 2024. That's a clear upward trend in operating performance, and smart money is starting to notice.

Your action here is simple: track the Adjusted EBITDA. If it continues to climb, the recovery thesis holds, and the institutional buyers will keep adding. If it stalls, the debt load becomes a much bigger problem, and the Silver Point Capital LP stake starts looking more like a distressed investment.

Market Impact and Investor Sentiment

You're looking at Studio City International Holdings Limited (MSC) and wondering who's buying, who's selling, and what that signals for the stock. Honestly, the investor profile is a classic Macau story right now: it's dominated by a major parent company, but the public float is seeing a tug-of-war between institutional risk-takers and debt-aware realists.

The direct takeaway is this: Major shareholder sentiment is cautiously positive due to a strong operational rebound, but broader market sentiment remains 'Hold' or 'Sell,' driven by a massive debt load. Your focus should be on the company's ability to service its US$2.06 billion in net total debt as of September 30, 2025, not just the revenue growth.

The Anchor: Melco Resorts & Entertainment Limited

The single most important investor in Studio City International Holdings Limited (MSC) is Melco Resorts & Entertainment Limited (MLCO), which holds a majority stake. This relationship is crucial because it aligns MSC's strategic direction-like the recent shift away from high-risk VIP operations-with Melco's broader Macau strategy.

This majority ownership provides stability, but it also limits the stock's independent movement. The market views Studio City International Holdings Limited (MSC) as a high-beta (more volatile) play on the Macau recovery, but it's still fundamentally a Melco subsidiary. The parent company's backing is a safety net, but it means any free cash flow generated will be prioritized for balance sheet clean-up rather than immediate shareholder returns like dividends or buybacks. That's a key action point for you: don't expect a dividend anytime soon.

For a deeper dive into this foundational relationship, you can check out Studio City International Holdings Limited (MSC): History, Ownership, Mission, How It Works & Makes Money.

Investor Sentiment: A Debt-Driven Neutral-to-Negative View

Current investor sentiment is split, but the consensus view from analysts is a 'Hold' or even 'Sell,' despite a significant operational improvement in 2025. The most recent analyst rating is a 'Hold' with a $4.00 price target.

Here's the quick math on the sentiment: The company's Q3 2025 unaudited results showed total operating revenues of US$182.5 million and Adjusted EBITDA of US$78.1 million, a clear rebound from previous periods. But still, the net loss attributable to Studio City International Holdings Limited for Q3 2025 was US$18.6 million (or US$0.10 per ADS). What this estimate hides is the high interest expense that eats into operating income, a direct consequence of the US$2.06 billion debt.

The skepticism is real, and you see it in the short interest. Short interest in Studio City International Holdings Limited (MSC) has recently increased by 26.84%, which is a defintely strong signal that a portion of the market believes the stock will decline, betting against the recovery narrative.

• Majority ownership by Melco Resorts & Entertainment Limited (MLCO) provides strategic stability.
• Institutional ownership sits around 20.42%, while insider ownership is 24.13%.
• High leverage and negative profitability constrain the stock's valuation.

Recent Market Reactions and Institutional Moves

The stock market has responded to ownership changes and earnings with volatility, reflecting the high-risk, high-reward nature of the Macau gaming sector. In the first quarter of 2025, hedge fund activity showed more institutional investors reducing their positions (four) than adding (two), a clear sign of risk-off behavior.

For example, WALLEYE CAPITAL LLC removed 100.0% of its position in Q1 2025, but on the flip side, UBS GROUP AG added a substantial 549.2% to their portfolio in the same quarter. This divergence shows that while some funds are exiting due to the debt and risk profile, others are making a high-conviction bet on the mass-market recovery and the success of the new non-gaming attractions.

The Q2 2025 earnings release, which showed an Adjusted EBITDA surge of 35.1% year-over-year to US$76.4 million, signaled a potential turnaround, largely driven by a better mass market table games hold percentage of 34.0%. However, even with strong operational results, the stock price can be temperamental, dropping -5.651% after a previous earnings report, proving that the market is hyper-focused on the bottom line and debt reduction.

Analyst Perspectives: Opportunities and Clear Actions

The consensus among analysts is that Studio City International Holdings Limited (MSC) is a turnaround story, but one with significant structural challenges. The opportunity lies in the strategic pivot to mass market gaming and non-gaming attractions, which is already showing results. Non-gaming revenues hit US$106.3 million in Q2 2025, up from US$99.4 million a year prior, demonstrating successful diversification.

The clear action for management, which analysts are watching, is debt management. The company's high debt-to-EBITDA ratio makes it very sensitive to interest rate changes and any slowdown in the Macau recovery. For you, the investor, the action is to monitor the debt-to-cash flow ratio and look for concrete evidence of continued debt repayment. The company repaid US$175.4 million in net debt in FY 2024, and sustained action like this is what will ultimately change the long-term investor profile from 'speculative hold' to 'growth buy.'