{"id":284182,"date":"2023-08-07T10:55:05","date_gmt":"2023-08-07T15:55:05","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=284182"},"modified":"2023-08-07T11:51:14","modified_gmt":"2023-08-07T16:51:14","slug":"hedge-funds-love-shares-of-caesars-entertainment","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/hedge-funds-love-shares-of-caesars-entertainment\/","title":{"rendered":"Caesars Entertainment Among Hedge Funds\u2019 Favorite Stocks"},"content":{"rendered":"

Shares of Caesars Entertainment (NASDAQ: CZR) are higher by 36.45% year to date, and that\u2019s good news for all investors, including the slew of hedge funds that are long on the stock.<\/p>\n

\"Caesars
Visitors entering Caesars Palace Las Vegas. The operator’s stock is a hedge fund favorite. (Image: David Paul Morris\/Bloomberg<\/em>)<\/figcaption><\/figure>\n

Recent data released to clients by Bank of America indicates Caesars has a net relative hedge fund to S&P 500 weight of 10.38, a tally exceeded by just nine other stocks. That puts the Harrah\u2019s operator on the top 20 list of equities most favored by hedge funds<\/a>. It\u2019s also the only gaming name in that group.<\/p>\n

We analyze hedge fund managers\u2019 positioning in the S&P 500 stocks by aggregating their long positions reported through the 13F filings, and by estimating their short positions based on exchange-reported data,\u201d<\/strong> wrote Bank of America equity strategist Savita Subramanian in a report. \u201cWe estimate that hedge funds account for 85% of the total short interest.\u201d<\/strong><\/p><\/blockquote>\n

Speaking of shorted stocks, consumer discretionary, home to gaming equities, is the second-most shorted sector after real estate. No gaming stocks appear on Bank of America\u2019s list of the 20 equities most underweight by hedge funds.<\/p>\n

More Hedge Funds Could Embrace Caesars<\/h2>\n

Hedge fund ownership of Caesars, and other casino stocks for that matter, has room to increase because those market participants currently aren\u2019t heavily exposed to cyclical stocks, which include consumer discretionary names.<\/p>\n

\n

Relative to long positioning in defensive sectors, hedge funds are currently underweight cyclical groups at nearly record levels. That’s while beta exposure “is well below average, and Value remains deeply underweight and historically cheap vs. Growth,\u201d adds Bank of America. Additionally, casino equities have long-term reputations as being favored destinations<\/a> for hedge funds.<\/p>\n<\/div>\n

Many hedge funds are opportunistic in their approaches to individual equities. Some overtly say they are looking to exploit \u201cspecial situations\u201d or that they are \u201cactivist investors.\u201d Special situations include buying large amounts of shares of a company to push for a sale. Other hedge funds buy shares in a company with the aim of landing a board seat so they can drive change, including asset sales or major cost reductions.<\/p>\n

For now, it appears hedge fund positioning in Caesars isn\u2019t derived from either of the two factors mentioned above, as the Harrah\u2019s operator isn\u2019t for sale and it\u2019s doing an admirable job of slashing debt<\/a> without cajoling from the investment community.<\/p>\n

Hedge Funds Could Benefit from Holding Caesars<\/h2>\n

Not all hedge funds are long-term investors, and some manage hundreds of equity positions, adding to and pruning those holdings every quarter.<\/p>\n

\n

If sell-side analysts are correct in their assumptions, there could be benefits for all long-only investors in holding Caesars. Of the 15 analysts covering the gaming name, 12 rate it \u201cstrong buy\u201d or \u201cbuy,\u201d and the average price target of $73.53 implies upside of 29.32% from current levels.<\/p>\n<\/div>\n

\u201cWhile macro may cloud short-term stock moves on given market days, we believe it is time to revisit CZR as net leverage continues to rapidly decline,\u201d wrote B. Riley analyst David Bain in a note out last week. \u201cLess leverage, we struggle to find reasons why CZR should not trade at a premium valuation across its business segments.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Caesars Entertainment (NASDAQ: CZR) are higher by 36.45% year to date, and that\u2019s good news for all investors, including the slew of hedge funds that are long on the stock. Recent data released to clients by Bank of America indicates Caesars has a net relative hedge fund to S&P 500 weight of 10.38, […]<\/p>\n","protected":false},"author":46,"featured_media":258670,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810],"tags":[81903,81898],"acf":[],"yoast_head":"\nHedge Funds Love Shares Of Caesars Entertainment<\/title>\n<meta name=\"description\" content=\"Hedge funds aren't heavy on cyclical stocks, but they do love Caesars Entertainment.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/hedge-funds-love-shares-of-caesars-entertainment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Hedge Funds Love Shares Of Caesars Entertainment\" \/>\n<meta property=\"og:description\" content=\"Hedge funds aren't heavy on cyclical stocks, but they do love Caesars Entertainment.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/hedge-funds-love-shares-of-caesars-entertainment\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-07T15:55:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-07T16:51:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/CP.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2200\" \/>\n\t<meta property=\"og:image:height\" content=\"1468\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/hedge-funds-love-shares-of-caesars-entertainment\/\",\"url\":\"https:\/\/www.casino.org\/news\/hedge-funds-love-shares-of-caesars-entertainment\/\",\"name\":\"Hedge Funds Love Shares Of Caesars Entertainment\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/hedge-funds-love-shares-of-caesars-entertainment\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/hedge-funds-love-shares-of-caesars-entertainment\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/CP.jpg\",\"datePublished\":\"2023-08-07T15:55:05+00:00\",\"dateModified\":\"2023-08-07T16:51:14+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Hedge funds aren't heavy on cyclical stocks, but they do love Caesars Entertainment.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/hedge-funds-love-shares-of-caesars-entertainment\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/hedge-funds-love-shares-of-caesars-entertainment\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/hedge-funds-love-shares-of-caesars-entertainment\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/CP.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/02\/CP.jpg\",\"width\":2200,\"height\":1468,\"caption\":\"Visitors entering Caesars Palace Las Vegas. 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