Corvex Management Ups MGM Stake
Keith Meister’s Corvex Management boosted its billet inward MGM Resorts International (NYSE:MGM) during the arcsecond quarter.
The elude monetary fund controlled past the MGM room member at present owns 15.67 zillion shares of the largest manipulator on the Las Vegas Strip, a post valued at $668.47 one thousand thousand as of June 30, according to a Form 13F filing with the Securities and Exchange Commission (SEC).
Corvex’s portfolio contains to a greater extent than 30 equity positions, spanning stay-at-home stocks, reopening ideas and “event-driven” plays. While the parry fund owns shares inwards several consumer discretionary stocks, including Amazon River (NASDAQ:AMZN), MGM Resorts is the only when cassino operator on its roster.
The Form 13F doesn’t show exactly when an investor buys or sell shares. But it’s potential Corvex is inwards the money on the newest division of its MGM stake, as the gillyflower gained 7.4 percent inward the June quarter. The shares are upwardly 20.37 percent year-to-date.
Corvex is the fourth-largest institutional investor inward MGM, trailing only if fund issuers Vanguard, BlackRock, and State Street.
Meister Bullish on MGM Online Exposure
Shares of the Bellagio operator interpret 29.39 percent of Corvex’s assets under management, and the evade monetary fund controls 3.2 percent of the gaming company’s shares outstanding, according to GuruFocus data.
Meister’s enthusiasm for the fellowship at which he holds a table sit stems inwards parting from the thriving BetMGM business. In an interview with CNBC earlier this year, the investor said he’s “massively bullish on the potency chance for BetMGM,” piece noting it’s “a misvalued asset” privileged the gaming company.
When the cassino operator reported second-quarter results earlier, it said BetMGM is the second-largest online sportsbook and iGaming political platform inward the US.
BetMGM is a 50/50 articulatio venture 'tween MGM and Entain Plc (OTC:GMVHY). That structure, linked with the cassino company’s increasing hard cash stockpile, is stoking venture among analysts and investor that as the online casino/sports betting business organization continues gaining securities industry share, MGM testament wear of sharing the political economy and make another takeover offer for the Brits operator.
In January, Entain rejected an $11.06 1000000000 conjure from MGM, calling it inadequate.
Meister Paid Off for MGM
Meister joined MGM’s plank inwards January 2019, eventually comme il faut i of the architects of the company’s asset-light strategy. That’s seen the casino operator shed often of its existent demesne holdings to conjure up immediate payment that can live allocated to faster-growing businesses.
That strategy is paying off handsomely, with recent transactions confirming as much. In July, MGM surprised Wall Street by paying $2.12 one million million for half of CityCenter and selling the holding assets of Aria and Vdara to Blackstone for $3.89 billion.
Two weeks ago, VICI Properties (NYSE:VICI) said it’s acquiring MGM Growth Properties (NYSE:MGP) for $17.2 1000000000 in stock, creating a $4.4 one million million windfall for MGM via its stakes in MGP.