The announcement of a $17.3 billion takeover offer by regional gaming company for Caesars Entertainment Corp. (NASDAQ:CZR) lead to tumbling of stock shares of Eldorado Resorts, Inc.’s (NASDAQ:ERI) in the second quarter. The effect was felt in the next quarter, where stock had to shed to a third of its value from its June pre-acquisition announcement peak to its September trough. However, as of Sept. 30, 44 hedge funds held positions in Eldorado stock.
Ownership of the regional gaming company’s shares by those instruments compares favorably with some other gaming equities with the 44 hedge funds having stakes in Eldorado. There are high expectations that Reno-based Eldorado will put the finishing touches on the deal that will create the largest US gaming company by number of properties in the first half of 2020.
Based on the amount of funds involved with the stock, hedge fund ownership of Eldorado slightly exceeds that of Las Vegas Sands. According to casino.org, gaming or otherwise is poised to increase, what differs is the managers’ time frames. Some hold stocks for a year or longer, while others may be involved for just a few quarters. Some familiar names are found among the hedge funds invested in Eldorado.
HG Vora has invested on shares at International Game Technology Plc (NYSE:IGT) and Twin River Worldwide Holdings, Inc. (NYSE:TRW). After HG Vora, Canyon Capital Advisors is the second-largest hedge fund owner of Eldorado. That firm also has a position in MGM Resorts International (NYSE:MGM).
