Billionaire Stanley Druckenmiller Just Dumped These 5 Stocks

Page 1 of 5

In this article, we look at why billionaire Stanley Druckenmiller just dumped these 5 stocks from his portfolio. If you want to read our comprehensive analysis of Duquesne Capital’s history, investment philosophy, and hedge fund performance, you can go directly to Billionaire Stanley Druckenmiller Just Dumped These 10 Stocks.

5. Penn National Gaming, Inc (NASDAQ:PENN)

Number of Hedge Fund Shareholders: 38

Penn National Gaming, Inc (NASDAQ:PENN) was the fifth-largest holding that Stanley Druckenmiller’s family office sold out of during Q4 2021, selling off its 417,200 shares that were worth $30.23 million at the end of Q3. That didn’t come as a total surprise, as Duquesne sold off over half its stake in the company during Q3 before finishing the job in Q4.

Hedge fund ownership of Penn National Gaming, Inc (NASDAQ:PENN) has fallen by 23% over the past year and a half, as several other prominent hedge funds like Arrowstreet Capital and Maverick Capital also sold off their stakes during Q4.

Penn National Gaming, Inc (NASDAQ:PENN) shares peaked in the first quarter of 2021, as the fervor over the broadening legalization of online gambling and sports betting reached a fever pitch. They’ve since fallen by over 60%.

As Baron Funds’ Baron Small Cap Fund noted in its Q4 2021 investor letter, investors have somewhat soured on these companies in recent quarters as aggressive promotional efforts have cut into earnings and margins. Nonetheless, Baron Funds remains a fan of both the stock and industry’s long-term potential. You can read its comments below:

“Shares of Penn National Gaming, Inc. fell in the quarter, as stocks of online gaming companies were under pressure. Sports betting and i-gaming are rolling out with great fanfare and success across the country; however, investors seem concerned about competition and margins. Most participants are spending heavily on marketing and promotions, which is cutting into margins. We see this as worthy investment in customer acquisition at a moment in time when revenues are just building. We continue to believe that online sports betting and gaming will be enormous industries, that that Penn will carve out a modest share. We think the business will have high margins as it matures. We believe we are underwriting both businesses conservatively and see much upside in the long term. Penn has a strong, well-performing brick and mortar casino business that we believe is worth close to its present stock price, so though we are taking a wait-and-see approach to its sports betting offering, there should be little downside from here.”

Page 1 of 5