Einhorn Lifts Penn Entertainment Stake Amid Board Controversy
Posted on: May 15, 2025, 05:30h.
Last updated on: May 16, 2025, 09:10h.
- DME Capital lifted stake in Penn in first quarter
- Increased Penn position as another hedge fund ramped up attacks on board, CEO
In the first quarter, David Einhorn’s DME Capital Management increased its investment in Penn Entertainment (NASDAQ: PENN) as another hedge fund was readying a proxy war against the regional casino operator.
A form 13F filing with the Securities and Exchange Commission (SEC) that was released after the close of US markets Thursday indicates Einhorn’s firm boosted its stake in Penn to approximately 6.27 million shares in the first three months of 2025 from about 5.75 million shares. Formerly known as Greenlight Capital, DME Capital initiated its position in Penn in the first quarter of 2024. Thursday’s 13F marks at least the second time the investor has added to its position in the gaming company.
Currently, Penn is the only gaming stock in the DME portfolio, and is one of just a handful of names the hedge fund added to in the first quarter. The money manager has a track record of investing in gaming equities as both long and short positions.
Big Coincidence in Timing of Einhorn 13F
The regulatory document confirming DME Capital added to its Penn investment arrived hours after the casino operator’s board of directors sent a letter to investors, levying allegations and harsh criticism against HG Vora, the hedge fund that’s waging a proxy war against the gaming company.
In the letter, Penn directors accused Vora of flouting state gaming laws to land three board seats. The directors also said the hedge fund wanted the gaming company to consider a debt-fueled buyback plan that would have required significant, potentially impermissible financial engineering, adding that Vora approached the gaming company about conducting a strategic review to ready itself for a sale.
The Penn/Vora controversy is ongoing and could come to a head at the gaming company’s annual meeting next month when shareholders will decide between the directors slate proposed by the gaming company and the “Gold Card” option pitched by Vora.
Although it’s clear the Penn/Vora flap didn’t prevent DME Capital from adding to its Penn stake, it’s not clear how Einhorn feels about the matter. Casino.org reached out for comment on the matter, including an inquiry about how DME will vote next month, but as of this writing, that request for remarks hadn’t been acknowledged.
DME has lowered the average price it paid for its Penn shares by adding to the position amid declines. Its original average purchase price was $22.69, but it’s likely well below that figure now. The stock closed at $15.81 on Thursday.
Other 13F Gaming News
In other 13F news pertaining to gaming stocks, Stanley Druckenmiller’s Duquesne Family Office significantly increased its stake in FanDuel parent Flutter Entertainment (NYSE: FLUT) in the first quarter to 377K shares from just 18,100 in the fourth quarter.
3G Capital lowered its stake in DraftKings (NASDAQ: DKNG) in the first three months of 2025. There was also some interesting political news in today’s batch of 13F filings.
Soros Fund Management started a new position in Las Vegas Sands (NYSE: LVS) in the March quarter. Investor George Soros and his family are long-time and significant donors to the Democratic party and its candidates while Sands’ largest individual investor — Dr. Miriam Adelson — is one of President Trump’s biggest benefactors and a frequent donor to the Republican party.
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