Hedge Funds Are Crazy About Full House Resorts, Inc. (FLL)

Out of thousands of stocks that are currently traded on the market, it is difficult to identify those that will really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of nearly 900 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has the potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about Full House Resorts, Inc. (NASDAQ:FLL).

Full House Resorts, Inc. (NASDAQ:FLL) investors should be aware of an increase in enthusiasm from smart money of late. Full House Resorts, Inc. (NASDAQ:FLL) was in 21 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic was previously 10. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 10 hedge funds in our database with FLL positions at the end of the fourth quarter. Our calculations also showed that FLL isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).

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Richard Driehaus of Driehaus Capital

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Chuck Schumer recently stated that marijuana legalization will be a Senate priority. So, we are checking out this under the radar stock that will benefit from this. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. With all of this in mind we’re going to analyze the key hedge fund action regarding Full House Resorts, Inc. (NASDAQ:FLL).

Do Hedge Funds Think FLL Is A Good Stock To Buy Now?

At the end of March, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 110% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards FLL over the last 23 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).

Is FLL A Good Stock To Buy?

Of the funds tracked by Insider Monkey, Driehaus Capital, managed by Richard Driehaus, holds the largest position in Full House Resorts, Inc. (NASDAQ:FLL). Driehaus Capital has a $11.3 million position in the stock, comprising 0.2% of its 13F portfolio. On Driehaus Capital’s heels is Renaissance Technologies, with a $10.2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other members of the smart money that are bullish comprise Dov Gertzulin’s DG Capital Management, George McCabe’s Portolan Capital Management and Brian Gustavson and Andrew Haley’s 1060 Capital Management. In terms of the portfolio weights assigned to each position 1060 Capital Management allocated the biggest weight to Full House Resorts, Inc. (NASDAQ:FLL), around 6.77% of its 13F portfolio. Fairpointe Capital is also relatively very bullish on the stock, designating 2.55 percent of its 13F equity portfolio to FLL.

As industrywide interest jumped, key hedge funds have jumped into Full House Resorts, Inc. (NASDAQ:FLL) headfirst. Driehaus Capital, managed by Richard Driehaus, initiated the most valuable position in Full House Resorts, Inc. (NASDAQ:FLL). Driehaus Capital had $11.3 million invested in the company at the end of the quarter. Dov Gertzulin’s DG Capital Management also initiated a $9.5 million position during the quarter. The following funds were also among the new FLL investors: George McCabe’s Portolan Capital Management, Christopher Hillary’s Roubaix Capital, and Ravee Mehta’s Nishkama Capital.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Full House Resorts, Inc. (NASDAQ:FLL) but similarly valued. These stocks are Daktronics, Inc. (NASDAQ:DAKT), CECO Environmental Corp. (NASDAQ:CECE), Horizon Global Corp (NYSE:HZN), Ruhnn Holding Limited (NASDAQ:RUHN), Cinedigm Corp (NASDAQ:CIDM), comScore, Inc. (NASDAQ:SCOR), and Horizon Technology Finance Corp (NASDAQ:HRZN). This group of stocks’ market caps are similar to FLL’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DAKT 14 16782 -1
CECE 9 43159 1
HZN 9 59724 -1
RUHN 3 2667 0
CIDM 5 695 3
SCOR 15 51605 1
HRZN 1 2446 -1
Average 8 25297 0.3

View table here if you experience formatting issues.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $63 million in FLL’s case. comScore, Inc. (NASDAQ:SCOR) is the most popular stock in this table. On the other hand Horizon Technology Finance Corp (NASDAQ:HRZN) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Full House Resorts, Inc. (NASDAQ:FLL) is more popular among hedge funds. Our overall hedge fund sentiment score for FLL is 90. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 23.8% in 2021 through July 16th and still beat the market by 7.7 percentage points. Unfortunately FLL wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on FLL were disappointed as the stock returned -1.5% since the end of the first quarter (through 7/16) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.

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