Mariko Gordon’s Daruma Asset Management increased its passive stake to 6.1% in Pinnacle Entertainment Inc. (PNK), according to the firm’s SEC 13G filing on November 7th. As reported, Daruma Asset Management now takes approximately 3.81 million shares in PNK, which is a 17% increase from its 3.26 million shares position in the second quarter. The 13G also indicates that Daruma Asset Management began its purchase on November 1st at below $11 per share. Now PNK is trading at $11.56, representing an 18% loss in 2011.
Based on Insider Monkey’s hedge fund database, thirteen hedge funds were bullish about PNK in the second quarter. Beside Daruma Asset Management’s largest portion, Paul Reeder and Edward Shapiro’s Par Capital Management had 2.87 million shares in PNK, and these two hedge funds had much more shares than the rest of the funds.
Daruma Asset Management was an employee owned hedge fund founded in 1995. The firm primarily invests in high-conviction portfolios with less than 35 stocks. The firm manages $1.5 billion investment capital, and mainly invests in Services and Technology sector.
Pinnacle Entertainment, Inc. is an owner, operator and developer of casinos and related hospitality and entertainment facilities. According to Yahoo! Finance, the company “operates casinos, such as L’Auberge du Lac in Lake Charles, Louisiana; River City Casino and Lumiere Place in St. Louis, Missouri; Boomtown New Orleans in New Orleans, Louisiana; Belterra Casino Resort in Vevay, Indiana; Boomtown Bossier City in Bossier City, Louisiana; and Boomtown Reno in Reno, Nevada. The company also operates River Downs racetrack in southeast Cincinnati, Ohio. The company was formerly known as Hollywood Park, Inc. and changed its name to Pinnacle Entertainment, Inc. in February 2000. Pinnacle Entertainment, Inc. was founded in 1935 and is based in Las Vegas, Nevada.”