Tiger Global Initiates Flutter Stake, Einhorn Adds to Penn Position

Despite the stock being down 19.52% year to date, Penn Entertainment (NASDAQ: PENN) was among the positions David Einhorn’s Greenlight Capital added to during the third quarter.

A new 13F filing with the Securities and Exchange Commission (SEC) indicates Einhorn’s hedge fund held approximately 5.6 million shares of the regional casino operator at the end of the third quarter. That stake would be worth more than $117 million based on Penn’s Thursday closing price of $20.94, assuming Greenlight hasn t altered its position in the stock since the start of the current quarter.

That’s below Greenlight paid when establishing its Penn position in the first quarter. At that time, Einhorn argued markets were assigning negative value to , noting that should the online sports betting business capture just a fraction of the value of rival DraftKings (NASDAQ: DKNG), it could be worth as much as $20 a share to Penn stock.

Currently, Penn is Greenlight’s only direct gaming investment, though the money manager has a position in Barry Diller’s IAC/InterActiveCorp (NASDAQ: IAC), noninstitutional shareholder in MGM Resorts International (NYSE: MGM).

FanDuel Parent Flutter Entertainment (NYSE: FLUT) was also among the gaming stocks well-known professional market participants stepped into during the July through September period.

During that time, Chase Coleman III’s Tiger Global Management, which runs an estimated $46 billion in assets, initiated a new position in the Dublin-based gaming company, buying 3.38M shares. Coleman is one of the “Tiger Cubs” acolytes of the late Julian Robertson.

Robertson, along with George Soros, are viewed as among the pioneers behind macro hedge funds. Speaking of Soros, his investment vehicle Soros Capital Management, reported a position in Flutter of 94,496 shares at the end of the third quarter, up dramatically from the 5,020 shares it owned at the end of June.

Soros has a lengthy history of involvement with , but most of his investments in the space have lasted mere months, not years.

Soros Capital Management and Tiger Global Management are just two examples, but they represent further proof of the validity of Flutter listing its shares in New York and later moving its primary listing to that city from London.

Those moves, which occurred earlier this year, were aimed at boosting the stock’s liquidity and broadening its investor audience among both professionals and retail market participants.

With in the books since Flutter listed in New York, it’s clear the move has had the desired impact of bringing more institutional investors into the fold.