Investment firm 3G Capital bids farewell to DraftKings, while Billionaire Tepper leaves Wynn.
In the dynamic world of gaming stocks, 13F filings are a valuable resource for understanding the investment strategies of professional investors. These quarterly reports provide a snapshot of the long equity holdings of institutional investment managers, including hedge funds managing at least $100 million in equity.
By analysing these filings, market participants can identify which gaming stocks are favoured or divested by large hedge funds, compare changes over time, and assess herd behaviour or consensus among hedge funds. This information can signal confidence or concern about parts of the gaming industry, detect emerging opportunities or risks, and provide insight into insider sentiment, capital flows, and potential future stock movements based on institutional holdings.
However, it's important to note that 13F filings only disclose long stock positions and exclude short positions or derivatives, which means a hedge fund’s true view on a gaming stock might be hedged or complex. Nevertheless, these reports remain one of the few consistent, publicly available windows into hedge fund investment patterns and are widely used for analysis in sectors like gaming.
Recently, some notable moves have been made in the gaming industry. For instance, a family office has made a new investment in Flutter Entertainment (NYSE: FLUT). On the other hand, George Soros's Soros Fund Management may have made a profit from selling Las Vegas Sands (NYSE: LVS), depending on when the selling was executed, as the stock soared over the course of the second quarter. The sale may have resulted in a loss for 3G Capital.
Other notable changes include Keith Meister's Corvex maintaining its stake in MGM Resorts International (NYSE: MGM), David Einhorn's DME Capital Management increasing its stake in Penn Entertainment (NASDAQ: PENN), and David Tepper's Appaloosa Management eliminating its position in Wynn Resorts (NASDAQ: WYNN).
Interestingly, Scopia Capital, Contour Asset Management, and Whale Rock Capital Management have allocated the largest percentages of their portfolios to DraftKings' stock. Despite 3G's decision to sell its DraftKings investment, DraftKings remains widely owned among asset managers and hedge funds.
As of June 30, the family office's gaming investments included Caesars Entertainment (NASDAQ: CZR), Churchill Downs (NASDAQ: CHDN), and Flutter Entertainment (NYSE: FLUT), with the latter being a new addition. The average price paid by 3G for the shares was $38.20.
In conclusion, the gaming industry continues to attract the attention of professional investors, and 13F filings offer valuable insights into the investment trends and strategies of these players. As the market evolves, it will be interesting to see how these trends continue to shape the gaming industry.
