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Then the coronavirus outbreak reached the US, bringing with it a slew of obstacles for the travel and leisure industry. The temporary closure of all domestic gaming properties because of the pandemic caused ERI stock to tumble from a 52-week high of $70.74 to a low of $6.02 in a matter of weeks. The shares lost more than two-thirds of their value just last month.<\/p>\n<\/div>\n
Some hedge funds bailed on ERI before the big coronavirus decline set in.<\/p>\n
In the fourth quarter, \u201cMark Coe’s Intrinsic Edge Capital dropped the largest stake of all the hedgies watched by Insider Monkey<\/i>, comprising close to $15.9 million in stock,\u201d according to the research firm. \u201cLomas Capital Management also said goodbye to its stock, about $8.3 million worth.\u201d<\/p>\nBag Holders<\/h2>\n
Still, plenty of hedge funds remained devoted to Eldorado in the fourth quarter, meaning some likely held the name into the COVID-19 slump.<\/p>\n
For example, Canyon Capital Advisors had an Eldorado stake worth about $313 million at the end of last June. Assuming that hedge fund still holds those 5.25 million shares, that position is now worth $68.25 million based on the roughly $13 handle ERI stock trades at today.<\/p>\n
Assuming they’re still holding the name, other hedge funds that are being burned by ERI’s decline include Park West Asset Management, Silver Point Capital, and Lafitte Capital Management. First-quarter data on professional ownership of stocks isn’t yet available.<\/strong><\/p>\nERI rallied Tuesday on reports the Caesars deal will close in June<\/a>, but the stock is giving back most of those gains today, trading lower by nearly 10 percent at this writing.<\/p>\n","protected":false},"excerpt":{"rendered":"Eldorado Resorts, Inc. (NASDAQ:ERI) stock remained a hedge fund favorite in the fourth quarter, possibly scorching some of those professional investors as the shares plunged 75.60 percent in the first three months of 2020. At the end of 2019, 49 hedge funds held stakes in the regional gaming company, the same level as was seen […]<\/p>\n","protected":false},"author":46,"featured_media":131778,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\n
Eldorado Rewarded Hedge Funds Last Year, a Theme That's Ceased<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n