Should You Add DraftKings (DKNG) to Your Portfolio?

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Brown Advisory Large-Cap Growth strategy has shown resilience this year amid heightened volatility, protecting investor capital during market declines and participating in the strong rebound since early April. The strategy returned 16% during the second quarter, slightly underperforming the benchmark, the Russell 1000® Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy highlighted stocks such as DraftKings Inc. (NASDAQ:DKNG). Headquartered in Boston, Massachusetts, DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company. The one-month return of DraftKings Inc. (NASDAQ:DKNG) was 6.37%, and its shares gained 19.43% of their value over the last 52 weeks. On September 09, 2025, DraftKings Inc. (NASDAQ:DKNG) stock closed at $45.91 per share, with a market capitalization of $22.793 billion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding DraftKings Inc. (NASDAQ:DKNG) in its second quarter 2025 investor letter:

“We initiated positions in DraftKings Inc. (NASDAQ:DKNG) and Fair Isaac Corporation (FICO) during the quarter. DraftKings (DKNG) is a leader in the rapidly expanding U.S. online gaming and sports betting market, capitalizing on ongoing state-by-state legalization and a growing total addressable market. As a co-leader in the industry, DraftKings is uniquely positioned to benefit from favorable regulatory trends and increased consumer adoption. The company is demonstrating improving economics, supported by disciplined cost management and operational leverage. With continued expansion, product innovation, and a strong brand, DraftKings is well-equipped to capture additional market share and sustain long-term growth.”

Why DraftKings Inc. (DKNG) Crashed On Monday

DraftKings Inc. (NASDAQ:DKNG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 66 hedge fund portfolios held DraftKings Inc. (NASDAQ:DKNG) at the end of the second quarter, which was 70 in the previous quarter. In the second quarter of 2025, DraftKings Inc.’s (NASDAQ:DKNG) revenue increased 37% year-over-year to $1.513 billion, and reported $301 million of adjusted EBITDA, reflecting a 20% adjusted EBITDA margin. While we acknowledge the risk and potential DraftKings Inc. (NASDAQ:DKNG) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DraftKings Inc. (NASDAQ:DKNG) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered DraftKings Inc. (NASDAQ:DKNG) and shared the list of stocks on Jim Cramer’s radar. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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