Gaming and Leisure Properties Inc (GLPI) Bid For Pinnacle Entertainment, Inc (PNK)’s Real Estate Assets: Did Hedge Funds See This Untapped Value?

How have hedgies been trading Pinnacle Entertainment, Inc (NYSE:PNK)?

According to hedge fund intelligence website Insider Monkey, HG Vora Capital Management, headed by Parag Vora, holds the most valuable position in Pinnacle Entertainment, Inc (NYSE:PNK). HG Vora Capital Management has 5.0 million shares worth about $180.5 million, comprising 22.5% of its 13F portfolio. Sitting at the Number two spot is Orange Capital, led by Daniel Lewis, holding a $106.1 million position of 2.94 million shares; the fund has 7.7% of its 13F portfolio invested in the stock. Remaining peers with similar optimism contain David E. Shaw’s D.E. Shaw & Co., L.P., Joshua Friedman and Mitchell Julis’ Canyon Capital Advisors, and Paul Reeder and Edward Shapiro’s PAR Capital Management.

Seeing as Pinnacle Entertainment, Inc (NYSE:PNK) has faced declining sentiment from the smart money, we can see that there lies a certain “tier” of hedgies that slashed their positions entirely in the first quarter. Interestingly, Roberto Mignone‘s Bridger Management said goodbye to the biggest investment out of the more than 700 funds tracked by Insider Monkey, valued at an estimated $50.6 million and comprised of 2.72 million shares, while David Warren of DW Partners was right behind this move, as the fund cut 2.0 million shares worth about $45 million.

Due to the bearish sentiment of hedge funds, and the fact that the new offer is already being priced into the shares as of this moment, we don’t see Pinnacle Entertainment, Inc (NYSE:PNK) as a particularly strong stock to buy at the moment, with little potential upside from the sale of its assets and its remaining business operations.

Disclosure: None