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Hedge Funds Are Buying Churchill Downs, Inc. (CHDN)

Consequently, specific money managers were breaking ground themselves. Gotham Asset Management, run by Joel Greenblatt, established the most outsized position in Churchill Downs, Inc. (NASDAQ:CHDN). According to its latest 13F filing, the fund had $3 million invested in the company at the end of the quarter. Brian Taylor’s Pine River Capital Management also initiated a $0.7 million position during the quarter. The other funds with brand new CHDN positions are Alec Litowitz and Ross Laser’s Magnetar Capital and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Churchill Downs, Inc. (NASDAQ:CHDN) but similarly valued. These stocks are HNI Corp (NYSE:HNI), Carrizo Oil & Gas, Inc. (NASDAQ:CRZO), Kosmos Energy Ltd (NYSE:KOS), and Cornerstone OnDemand, Inc. (NASDAQ:CSOD). All of these stocks’ market caps match CHDN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HNI 17 37072 6
CRZO 19 167623 -6
KOS 7 33509 -2
CSOD 29 400126 2

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $160 million. That figure was $705 million in CHDN’s case. Cornerstone OnDemand, Inc. (NASDAQ:CSOD) is the most popular stock in this table. On the other hand Kosmos Energy Ltd (NYSE:KOS) is the least popular one with only 7 bullish hedge fund positions. Churchill Downs, Inc. (NASDAQ:CHDN) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CSOD might be a better candidate to consider a long position.

Disclosure: none.

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