Bally’s, MGM Among Casino Stocks Hedge Funds Pared in Q2

Bally’s (NYSE: BALY) and MGM Resorts International (NYSE: MGM) are among the gaming equities in which some well-known hedge funds reduced their positions in the second quarter.

Bally’s, the Rhode Island-based regional casino operator that’s long been a favorite of hedge funds, slumped 22.2% in the June quarter, the period in which John Paulson’s eponymous hedge fund exited its position in the stock.

Major institutional investors, including hedge funds, are required to file 13F’s within 45 days of the end of the prior quarter. They aren’t required to disclose the dates on which they bought or sold securities, so there’s no way of knowing exactly when Paulson & Co. departed the Bally’s position.

Hedge Funds Also Tinkered with MGM, Wynn Positions

Corvex Management, the hedge fund run by MGM board member Keith Meister, pared its exposure to the Bellagio operator in the June quarter.

Wynn Resorts (NASDAQ: WYNN) was also among the casino operator equities that saw a professional money manager sell some shares. 3G Capital Partners, the investment firm co-founded by Brazilian billionaire Alexandre Behring, reduced its Wynn position to 105K shares from 117,500 at some during the April through June period.

Wynn was one of several stocks in which 3G trimmed positions during the previous quarter. It’s the only gaming equity currently owned by the money manager.

Whale Rock Initiates DraftKings Stake

As the stock surged as the sportsbook operator was notching its profitable quarter as a publicly traded company, DraftKings (NASDAQ: DKNG) caught the attention of at least one hedge fund in the April through period.

DraftKings is the only gaming equity held by Whale Rock, but the hedge fund owns a slew of technology equities, some of which are emerging growth names, as is DraftKings.

Whale Rock, which has been in business since 2006, is based in Boston. That’s DraftKings’ home city, too.