Wynn Resorts, Limited (WYNN), Las Vegas Sands Corp. (LVS), MGM Resorts International (MGM): Casino Stocks Still Under Pressure As Macau Posts Another Decline Of Revenue From Gaming

The hedge fund sentiment was comparatively lower for Las Vegas Sands Corp. (NYSE:LVS) with 24 hedge funds holding $390.17 million worth of stock, versus 33 funds with $495.07 million a quarter earlier. Josh Resnick’s Jericho Capital Asset Management held 1.12 million shares of the casino operator valued at $61.78 million at the end of March.

Moreover, MGM Resorts International (NYSE:MGM) witnessed an inflow of capital during the first three months of the year to $1.76 billion from $1.45 billion a year earlier, while the number of hedge funds holding positions in the company was up to 58 from 45. Among the funds we track, York Capital Management, led by James Dinan, had 9.94 million shares of MGM Resorts in its portfolio valued at $209.09 million.

Why are we interested in the 13F filings of a select group of hedge funds? We use these filings to determine the top 15 small-cap stocks held by these elite funds based on 16 years of research that showed their top small-cap picks are much more profitable than both their large-cap stocks and the broader market as a whole. These small-cap stocks beat the S&P 500 Total Return Index by an average of nearly one percentage point per month in our backtests, which were conducted over the period of 1999 to 2012. Moreover, since the beginning of forward testing from August 2012, the strategy worked just as our research predicted, outperforming the market every year and returning 123% over the last 35 months, which is more than 60 percentage points higher than the returns of the S&P 500 ETF (SPY) (see more details).

Disclosure: None