Concerns of Economic Slowdown Affected the Shares of Boyd Gaming Corp. (BYD)

Baron Funds, an asset management company, released its “Baron Focused Growth Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The fund declined 19.91% in the second quarter compared to a 19.55% fall for the Russell 2500 Growth Index. Inflation, the Ukraine war, and interest rate hikes impacted the quarterly performance of the fund. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Baron Funds discussed stocks like Boyd Gaming Corporation (NYSE:BYD) in the second quarter investor letter. Headquartered in Las Vegas, Nevada, Boyd Gaming Corporation (NYSE:BYD) is a gaming company. On September 12, 2022, Boyd Gaming Corporation (NYSE:BYD) stock closed at $57.26 per share. One-month return of Boyd Gaming Corporation (NYSE:BYD) was -1.80% and its shares lost 2.25% of their value over the last 52 weeks. Boyd Gaming Corporation (NYSE:BYD) has a market capitalization of $6.118 billion.

Here is what Baron Funds specifically said about Boyd Gaming Corporation (NYSE:BYD) in its Q2 2022 investor letter:

“Shares of Boyd Gaming Corporation (NYSE:BYD), a regional casino gaming company, declined 24.1% and hurt performance by 31 bps. The decline was due to concerns that a possible economic slowdown would cut into visitation and spending levels at its properties. Thus far, management has not seen any change to visitation or spending. Boyd has a robust balance sheet and is using its excess cash flow to invest in its properties and buy back its shares. Boyd’s underleveraged financials at just 2.5 times lease-adjusted net leverage give it the ability to continue to invest in its assets, pursue accretive acquisitions, and return capital to shareholders.”

Boyd Gaming Corporation (NYSE:BYD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Boyd Gaming Corporation (NYSE:BYD) at the end of the second quarter which was 40 in the previous quarter.

We discussed Boyd Gaming Corporation (NYSE:BYD) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other leading investors.

Disclosure: None. This article is originally published at Insider Monkey.