Soros Fund Management Eliminates Caesars, MGM Stakes, Adds Sands

Posted on: August 13, 2022, 02:09h. 

Last updated on: August 14, 2022, 04:42h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Soros Fund Management, the family office of billionaire financier George Soros, sold positions in Caesars Entertainment (NASDAQ:CZR) and MGM Resorts International (NYSE:MGM) in the second quarter.

Soros Caesars
Billionaire investor George Soros, seen at a public event, above. His family departed stakes in Caesars and MGM in the second quarter. (Image: Bloomberg)

During the April through June period, the investment vehicle eliminated 31 positions. By order of size, MGM was the fourth-largest subtraction from the Soros Fund Management portfolio. The firm disclosed yesterday in a Form 13F filing with the Securities and Exchange Commission (SEC).

At the end of the first quarter, the money manager owned 162,322 shares of the Caesars Palace operator and 350,001 shares of MGM, according to SEC data.

Institutional investment managers that use the United States mail (or other means or instrumentality of interstate commerce) in the course of their business and that exercise investment discretion over $100 million or more in Section 13(f) securities must file Form 13F,” according to the SEC.

Professional investors must file 13F with regulators within 45 days of the end of the prior quarter.

Soros Missed Caesars, MGM Rallies

For stock ideas, some market participants like to examine the 13Fs of big-name investors — such as Soros and Warren Buffett. But it should be noted that 13Fs do not include a money manager’s short positions, cash on hand, or other asset classes held besides long equity holdings.

However, professional investors are not infallible. They make mistakes. For example, Soros Fund Management exited Caesars and MGM stocks sometime between April and June, when the shares struggled. But both casino names are bouncing back.

Over the past month, Caesars is higher by 45.15%, while MGM is up 25.22%. Those performances by the two largest operators on the Las Vegas Strip could be signs consumer demand for casino gaming remains robust. That’s particularly true in Las Vegas, and recession chatter could prove overstated.

Additionally, shares of both operators are being supported by declining losses and reduced marketing spending by their iGaming and online sportsbook units. Further propelling those stocks and shares of several of their peers in recent weeks is the point that BetMGM and Caesars Sportsbook are flirting with profitability — a notion that once seemed far-flung.

Soros Still Has Some Gaming Exposure

Even with the sales of its Caesars and MGM investments, Soros Fund Management has some exposure to the gaming industry.

The family office purchased 220,000 shares of Las Vegas Sands (NYSE:LVS) in the June quarter, making that one of the firm’s new equity positions.

The billionaire’s investment vehicle also owns two million shares of streaming entertainment company FuboTV (NYSE:FUBO). That firm is rumored to be a potential takeover target for sportsbook operators looking to add customers on the cheap. All while breaking into streaming in a bid to bolster in-game betting offerings.