More Upside for This Children’s IP Owner? Some Hedge Funds Think So

Over the past year, WildBrain (TSE:WILD) (OTCMKTS:WLDBF) shares have doubled, rising from C$1 to C$2 between early June 2024 and June 5, 2025. That could leave some investors questioning how much gas is left in the tank, but improving fundamentals and growth in the company’s children’s brands suggest there could be plenty left — if some hedge funds are correct.

Background on WildBrain

Excluding the major studios in Hollywood, Toronto-based WildBrain is the biggest owner of intellectual property for children, with almost 500 different properties. The company is a producer and distributor of content for children, delivering it across broadcast platforms, streaming services, its on-demand platform, and FAST channels. Additionally, WildBrain sees large amounts of revenue via licensing on consumer products, which creates a sizable secondary income stream.

Among the company’s major IPs are Teletubbies, Inspector Gadget, Strawberry Shortcake, Yo Gabba Gabba!, Callilou and others. WildBrain also owns a 41% stake in Peanuts Worldwide, which owns Charlie Brown, Snoopy and other Peanuts characters. Additionally, WildBrain owns the global distribution rights for certain TV programs owned by Mattel.

The bull case for WildBrain

In its Q4 2024 letter to investors, Old West Investment Management presented the bull case for WildBrain, one of its top contributors for the fourth quarter. During the quarter, the company’s stock jumped on the news that it was selling its broadcast business and that a key insider was purchasing shares.

Although WildBrain shares have finally taken off, Old West said the stock has been a challenging one to own, frequently testing the team’s patience and often causing them to question what they might be missing. Of course, cheap stocks can stay undervalued for a long time, but Old West has no interest in owning perpetually cheap stocks.