Carillon Tower: “DraftKings (DKNG) is Positioned Well to Capitalize a Long-Term Secular Trend”

Carillon Tower Advisers, an investment management firm, published its fourth quarter 2020 “Carillon Eagle Mid Cap Growth Fund” investor letter – a copy of which can be downloaded here. In the letter, the fund talked about their best and worst securities, together with their outlook for this year from an investment perspective. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Carillon Tower Advisers, in their Q4 2020 investor letter, mentioned DraftKings Inc. (NASDAQ: DKNG) and emphasized their views on the company. DraftKings Inc. is a Boston, Massachusetts-based sports betting company that currently has a $26.5 billion market capitalization. Since the beginning of the year, DKNG delivered a 43.11% return, massively extending its 12-month gains to 412.54%. As of March 24, 2021, the stock closed at $66.63 per share.

Here is what Carillon Tower Advisers has to say about DraftKings Inc. in their Q4 2020 investor letter:

“DraftKings is a digital sports entertainment and gaming company that provides online and retail sports wagering, online daily fantasy contests, and online casino games. The firm’s shares underperformed, despite reporting strong earnings and outlook with its most recent quarterly update. The stock pulled back meaningfully from its highs in October as it needed to work through a notable share lockup expiry. We remain bullish on the future growth prospects of the online sports gambling industry and believe DraftKings is positioned exceptionally well to capitalize on what appears to be a long-term secular trend.”


Our calculations show that DraftKings Inc. (NASDAQ: DKNG) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, DraftKings Inc. was in 48 hedge fund portfolios, compared to 43 funds in the third quarter. DKNG delivered a 23.64% return in the past 3 months.