Investment firm Tiger Global purchases a share in Flutter, while Einhorn increases his stake in Penn.
In the dynamic world of finance and gaming, significant moves by prominent investment firms have caught the attention of industry observers. This article delves into the latest developments in the Financial and Gaming Business sectors, focusing on the strategic acquisitions by Soros Capital Management, Tiger Global Management, and Greenlight Capital.
On November 14, 2024, Todd Shriber reported that George Soros's investment vehicle, Soros Capital Management, had increased its stake in Flutter, purchasing 94,496 shares at the end of the third quarter. This move represents a substantial increase from the 5,020 shares owned at the end of June. Soros, one of the acolytes of the late Julian Robertson, who are viewed as among the pioneers behind macro hedge funds, continues to demonstrate his interest in the gaming sector.
However, it's worth noting that Soros Capital Management's involvement in gaming equities has typically been short-lived, lasting mere months, not years.
Meanwhile, Tiger Global Management, run by Chase Coleman III and managing an estimated $46 billion in assets, initiated a new position in the Dublin-based gaming company, Flutter Entertainment, buying 3.38M shares.
The moves by Soros Capital Management and Tiger Global Management further prove the validity of Flutter's decision to list its shares in New York. Since Flutter listed in New York, it's clear that the move has had the desired impact of bringing more institutional investors into the fold.
In a related development, Penn Entertainment (NASDAQ: PENN) was among the positions added by David Einhorn's Greenlight Capital during the third quarter. Greenlight Capital held approximately 5.6 million shares of Penn Entertainment at the end of the third quarter, although the stake is below the average price they paid when establishing the position in the first quarter, making it worth more than $117 million based on Penn's Thursday closing price. Greenlight Capital's only direct gaming investment is Penn Entertainment.
Einhorn argued that markets were assigning negative value to Penn's ESPN Bet unit. However, if the ESPN Bet unit captures a fraction of the value of rival DraftKings, it could be worth as much as $20 a share to Penn stock.
Interestingly, IAC/InterActiveCorp (NASDAQ: IAC) is the largest noninstitutional shareholder in MGM Resorts International (NYSE: MGM).
The moves by Flutter were aimed at attracting more institutional investors. Flutter's decision to list its shares in New York and later move its primary listing to that city from London were aimed at boosting the stock's liquidity and broadening its investor audience among both professionals and retail market participants.
These strategic investments and moves by the aforementioned firms underscore the growing interest in the gaming sector and the potential for significant returns in the industry. As always, it's essential for investors to conduct thorough research and consider their risk tolerance before making any investment decisions.
This article was last updated on November 15, 2024.
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