What Makes Wynn Resorts, Limited (WYNN) an Investment Bet?

Baron Funds, an investment management company, released its “Baron Discovery Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund was up 14.76% (Institutional Shares), outperforming the 11.97% return for the Russell 2000 Growth Index. The fund was up 7.68% year-to-date, well ahead of the Index’s -0.48% return.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Discovery Fund highlighted stocks such as Wynn Resorts, Limited (NASDAQ:WYNN). Wynn Resorts, Limited (NASDAQ:WYNN) owns and operates resorts that operates through Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor segments. The one-month return of Wynn Resorts, Limited (NASDAQ:WYNN) was 3.69%, and its shares gained 39.16% of their value over the last 52 weeks. On July 30, 2025, Wynn Resorts, Limited (NASDAQ:WYNN) stock closed at $109.53 per share, with a market capitalization of $11.452 billion.

Baron Discovery Fund stated the following regarding Wynn Resorts, Limited (NASDAQ:WYNN) in its second quarter 2025 investor letter:

“During the quarter, we established a new position in Wynn Resorts, Limited (NASDAQ:WYNN). Wynn is a luxury resort and casino operator which currently owns integrated gaming properties in Las Vegas, Macau, and Boston. At the start of the quarter, the potential impact of tariffs and a trade war with China weighed on the stock. We took advantage of this weakness by building a position at what we believed were attractive prices. In preview, our analysis showed that we were buying the stock at trough valuation multiples on both the Las Vegas and Macau properties and we were getting the upside from the currently under construction Al Marjan Island project (located in the UAE) for essentially free.

There are a handful of factors that differentiate Wynn from other casino operators and make the stock attractive in our opinion. First, we believe Wynn remains the most differentiated operator in the gaming sector with a premium offering that caters to high-end customers. This focus on premium service enables the company to command higher room rates and gaming revenue per visitor. This also helps to insulate the company during more challenging macro economic periods…” (Click here to read the full text)

Wynn Resorts (WYNN) Surges 8.8% on Macau Gaming Revenue Jump

Aerial view of a luxury hotel tower surrounded by lush green landscaping.

Wynn Resorts, Limited (NASDAQ:WYNN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Wynn Resorts, Limited (NASDAQ:WYNN) at the end of the first quarter, which was 64 in the previous quarter. While we acknowledge the risk and potential of Wynn Resorts, Limited (NASDAQ:WYNN) 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 WYNN RESORTS, LIMITED (NASDAQ:WYNN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Wynn Resorts, Limited (NASDAQ:WYNN) 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.