Einhorn Reduces Penn Entertainment Holdings as Shares Slip

• DME Capital sold nearly 700,000 shares of Penn Entertainment in Q4
• The hedge fund was also likely a seller of the regional casino stock in the prior
• The money manager still owns more than six million shares of the gaming stock

David Einhorn’s DME Capital Management reduced its holdings of Penn Entertainment (NASDAQ: PENN) in the final three months of 2025.

The hedge fund’s latest Form 13F filed with the Securities and Exchange Commission (SEC) indicates it entered 2026 owning 6.04 million shares of the regional casino operator, down from 6.77 million at the start of the fourth quarter.

It appears likely that the December quarter marked the second consecutive quarter in which DME reduced its exposure to Penn because it held 7.5 million shares of the gaming stock at the end of June 2025. Penn remains the lone casino stock in the DME portfolio, but the hedge fund held several other consumer discretionary names at the end of 2025.

Penn Weakness May Be Behind Einhorn Decision

Money managers aren’t legally bound to disclose why they buy or sell stocks, so no official reason why DME reduced exposure to Penn has been given.

Form 13F’s don’t indicate exactly when transactions are made, but as it relates to DME and Penn, it’s interesting to note that the fourth quarter included Penn’s announcement that it was scrapping the troubled ESPN Bet venture. While that announcement was viewed as a positive by many in the investment community, the stock continued trending lower following that announcement and currently resides at its lowest levels in roughly six years.

In Other 13F News

Tuesday brought a flurry of Form 13F filings, plenty of which include gaming names. Appaloosa Management, the hedge fund controlled by Carolina Panthers owner David Tepper, dumped its stake in Caesars Entertainment (NASDAQ: CZR), another struggling casino stock. That hedge fund held the stock for more than two years, indicating it likely lost money on that investment.

In the fourth quarter, several other hedge funds maintained exposure to gaming equities including FanDuel parent Flutter Entertainment and MGM Resorts International (NYSE: MGM).

On the positive side of the ledger, Ricky Sandler’s Eminence Capital boosted its stake in DraftKings during the final three months of 2025. That money manager held 8.4 million shares of the sports wagering stock at the end of the fourth quarter, up from 6.3 million at the conclusion of the prior quarter.