3G Capital Departs DraftKings, Tepper Exits Wynn

• Hedge fund eliminates its DraftKings stake
• It was a small investment, just 70K shares at the end of Q2

Shares of DraftKings (NASDAQ: DKNG) ticked slightly lower in Thursday’s after-hours session perhaps due in part to a regulatory filing indicating 3G Capital eliminated its position in the gaming company.

A new Form 13F filing with the Securities and Exchange Commission (SEC) by Jorge Paulo Lehman’s hedge fund confirms the money manager dropped its DraftKings investment at some point during the second quarter. It entered that period with 70,000 shares of the sportsbook operator’s Class A stock.

The writing may have been on the wall as it relates to 3G and DraftKings because the money manager began paring its investment in the online sportsbook operator in the first quarter. Still, the gaming stock remains widely owned among asset managers and hedge funds with Scopia Capital, Contour Asset Management, and Whale Rock Capital Management allocating the largest percentages of their portfolios to the stock.

Tepper’s Appaloosa Drops Wynn Resorts

DraftKings wasn’t the only gaming stock to be axed by a hedge fund in the second quarter. David Tepper’s Appaloosa Management eliminated its position in Wynn Resorts (NASDAQ: WYNN), a stock the money manager previously moved in and out of.

As of June 30, Tepper’s hedge fund maintained a position in Caesars Entertainment (NASDAQ: CZR), another gaming name the firm has shuffled in and out of over the years. The billionaire financier is also the owner of the NFL’s Carolina Panthers.

The family office’s gaming investments as of June 30 were Caesars Entertainment (NASDAQ: CZR), Churchill Downs (NASDAQ: CHDN), and Flutter Entertainment (NYSE: FLUT), which appears to be a new addition.

Other 13F Odds and Ends

With 13F filing season in full swing, investors can expect a flurry of mentions of gaming equities because those stocks have long been favorites of professional investors for both long and short purposes. Thus far, not all of the mentions have been sales.

David Einhorn’s DME Capital Management increased its stake in regional casino operator Penn Entertainment (NASDAQ: PENN). Keith Meister’s Corvex maintained its stake in MGM Resorts International (NYSE: MGM), which isn’t surprising considering he’s a director at that company.