Matt Goodson, managing director of Salt Funds Management, said NZME has had years of pressure from structural change in the sector and maybe it is now coming out the other end.
The NZ Herald numbers picked up over the Covid crisis - the housing and automobile advertising will be helping - and papers like the New York Times have also done well, Goodson said.
Osmium's website says it focuses on investing in high-quality, small capitalisation public equities "via an exhaustive, bottom-up research process".
On September 3, Renaissance Smaller Companies said it had lowered its holding in NZME to 5.75 per cent from 10.5 per cent.
Osmium has been watching NZME for three years before it decided to invest, founder and
managing partner John Lewis told the Herald last month.
"Coming into the fourth quarter, I thought this would be a very rough time, but NZME pivoted rapidly and pulled out a win," Lewis said then.
On August 25, NZME reported a 5 per cent increase in operating earnings to $28.9m as rapid restructuring efforts and new online initiatives including premium subscriptions and OneRoof, helped to offset Covid-19's impact on advertising.
The board said dividend payments could resume after June 30 next year.