REVIEW
2019 Review: Top Hedge Fund Stocks Vs. Melco Resorts & Entertainment Limited (MLCO)
It seems that the masses and most of the financial media hate hedge funds and what they do, but why is this hatred of hedge funds so prominent? At the end of the day, these asset management firms do not gamble the hard-earned money of the people who are on the edge of poverty. Truth be told, most hedge fund managers and other smaller players within this industry are very smart and skilled investors. Of course, they may also make wrong bets in some instances, but no one knows what the future holds and how market participants will react to the bountiful news that floods in each day. The Standard and Poor’s 500 Total Return Index ETFs returned 31.2% in 2019. Conversely, hedge funds’ top 20 large-cap stock picks generated a return of 41.3% during the same period, with the majority of these stock picks outperforming the broader market benchmark. Coincidence? It might happen to be so, but it is unlikely. Our research covering the last 18 years indicates that hedge funds' consensus stock picks generate superior risk-adjusted returns. That's why we believe it isn't a waste of time to check out hedge fund sentiment before you invest in a stock like Melco Resorts & Entertainment Limited (NASDAQ:MLCO).
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) was in 24 hedge funds' portfolios at the end of September. MLCO shareholders have witnessed an increase in support from the world's most elite money managers in recent months. There were 22 hedge funds in our database with MLCO holdings at the end of the previous quarter. Our calculations also showed that MLCO isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video at the end of this article for Q2 rankings).
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 91% since May 2014 and outperformed the Russell 2000 ETFs by nearly 40 percentage points. Our short strategy outperformed the S&P 500 short ETFs by 20 percentage points annually (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
[caption id="attachment_339612" align="aligncenter" width="600"] Kerr Neilson of Platinum Asset Management[/caption]
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We leave no stone unturned when looking for the next great investment idea. For example Europe is set to become the world's largest cannabis market, so we check out this European marijuana stock pitch. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. This December, we recommended Adams Energy as a one-way bet based on an under-the-radar fund manager's investor letter and the stock is still extremely cheap despite already gaining 20 percent. With all of this in mind we're going to take a gander at the latest hedge fund action surrounding Melco Resorts & Entertainment Limited (NASDAQ:MLCO).
At the end of the third quarter, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 9% from the second quarter of 2019. The graph below displays the number of hedge funds with bullish position in MLCO over the last 17 quarters. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
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According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Lei Zhang's Hillhouse Capital Management has the biggest position in Melco Resorts & Entertainment Limited (NASDAQ:MLCO), worth close to $85.3 million, accounting for 1.2% of its total 13F portfolio. The second largest stake is held by Platinum Asset Management, managed by Kerr Neilson, which holds a $58.7 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Some other members of the smart money that hold long positions encompass Brett Barakett's Tremblant Capital, Renaissance Technologies and Ken Griffin's Citadel Investment Group. In terms of the portfolio weights assigned to each position Indus Capital allocated the biggest weight to Melco Resorts & Entertainment Limited (NASDAQ:MLCO), around 4.66% of its 13F portfolio. Tremblant Capital is also relatively very bullish on the stock, dishing out 3.27 percent of its 13F equity portfolio to MLCO.
As industrywide interest jumped, some big names have jumped into Melco Resorts & Entertainment Limited (NASDAQ:MLCO) headfirst. Hillhouse Capital Management, managed by Lei Zhang, established the biggest position in Melco Resorts & Entertainment Limited (NASDAQ:MLCO). Hillhouse Capital Management had $85.3 million invested in the company at the end of the quarter. Ben Levine, Andrew Manuel and Stefan Renold's LMR Partners also made a $10.7 million investment in the stock during the quarter. The other funds with brand new MLCO positions are Peter Rathjens, Bruce Clarke and John Campbell's Arrowstreet Capital, Fang Zheng's Keywise Capital Management, and Israel Englander's Millennium Management.
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Melco Resorts & Entertainment Limited (NASDAQ:MLCO) but similarly valued. We will take a look at Teck Resources Ltd (NYSE:TECK), RPM International Inc. (NYSE:RPM), Bright Horizons Family Solutions Inc (NYSE:BFAM), and Brookfield Property Partners LP (NASDAQ:BPY). This group of stocks' market caps resemble MLCO's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TECK,17,575085,-6 RPM,32,410079,7 BFAM,27,216673,7 BPY,8,32207,2 Average,21,308511,2.5 [/table]
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As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $309 million. That figure was $534 million in MLCO's case. RPM International Inc. (NYSE:RPM) is the most popular stock in this table. On the other hand Brookfield Property Partners LP (NASDAQ:BPY) is the least popular one with only 8 bullish hedge fund positions. Melco Resorts & Entertainment Limited (NASDAQ:MLCO) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. Hedge funds were also right about betting on MLCO, though not to the same extent, as the stock returned 41.2% during 2019 and outperformed the market as well. Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
5 Most Popular Stocks Among Hedge Funds
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Disclosure: None. This article was originally published at Insider Monkey.
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Spectacle Entertainment And Hard Rock International Break Ground On $400 Million Hard Rock Casino Northern Indiana
GARY, Ind., Jan. 13, 2020 /PRNewswire/ -- Spectacle Entertainment and Hard Rock International announced the development and construction of Hard Rock Casino Northern Indiana at an official groundbreaking ceremony held on Thursday, Jan. 9. The ceremony was conducted at the construction site, located at 5400 West 29th Ave. In Gary, and included state and local officials, Spectacle Entertainment and Hard Rock executives.
First row, left to right: Executive Vice President Spectacle Entertainment Jim Brown, Chief Operating Officer Hard Rock International Jon Lucas, Chairman of the Seminole Tribe of Florida Marcellus Osceola, Chairman and Chief Executive Office Spectacle Entertainment Rod Ratcliff, Vice Chairman Spectacle Entertainment Greg Gibson, Gary Mayor Jerome Prince, Executive Vice President Spectacle Entertainment and General Manager Majestic Star Casino Jahnae Erpenbach, Executive Director Indiana Gaming Commission Sara Tait, President and CEO of the South Shore Convention and Visitors Authority Speros Batitstatos. Second Row, left to right: Hard Rock International Board Of Directors Member Robert Gips, Former Gary Mayor Karen Freeman-Wilson, Gary Common Council President Mike Brown, Marlon Jackson, Senior Vice President Design & Project Development Hard Rock International Joe Emanuele, Jackie Jackson, Tito Jackson, Former Indiana State Senator Earline Rogers, President of Gary Chamber of Commerce Chuck Hughes, Vice President of Development Spectacle Entertainment Rich Zeigler, Senior Vice President of Casino Development Hard Rock International Sean Caffery, Vice President and General Counsel Spectacle Entertainment John Keeler.
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Concluding the ceremony, Executive Director of the Indiana Gaming Commission Sara Tait, Spectacle Entertainment Chairman and Chief Executive Officer Rod Ratcliff and Chairman of the Seminole Tribe of Florida Marcellus Osceola planted shovels to commemorate the start of construction on Indiana's first Hard Rock property. Various other officials, including Gary Mayor Jerome Prince and Hard Rock International Chief Operating Officer Jon Lucas joined the trio on stage.
The premier 200,000-square-foot entertainment complex is a joint venture between the two companies and will include six food venues, a sportsbook, a retail shop, a 2,000-seat showroom and more than 2,130 gaming positions. Phase two of the project will see the addition of a 200-plus-room hotel and a multi-level parking garage.
Guests of Honor at the ceremony were Tito, Jackie and Marlon Jackson, of the world-renowned Jackson family. The brothers began their career while residing in Gary and returned to the area as a group for the first time in fifty years. With hits like "I Want You Back" and "Never Can Say Goodbye," The Jacksons are known as one of the most influential families in musical history.
Hard Rock Casino Northern Indiana is forecasting more than $20 million annually in tax revenue and payments to the City of Gary and surrounding communities. Approximately 1,000 construction jobs, with an emphasis to hire union labor, and an estimated additional 500 jobs are expected. With a location adjacent to the 80/94 Burr Street interchange and approximately 193,000 cars passing daily, the expectation is to become the leading entertainment destination for the entire Northern Indiana region.
Additionally, Spectacle Entertainment has a commitment to local investment with a pledge to work with minority and women owned businesses. Currently all 17 senior leaders at Spectacle's Majestic Star Casino are board directors for local charitable and community organizations in Gary and the Northern Indiana region. The team has sponsored, participated and volunteered for multiple local events and programs throughout the year, with a plan to directly drive more than $500,000 in fundraising in 2020.
Ratcliff stated, "Breaking ground for Hard Rock Casino Northern Indiana is the start of an incredible partnership between Spectacle Entertainment, Hard Rock International and the City of Gary, Indiana. It is an honor to be here today and to see this dream become a reality. A lot of work has gone into this project, a lot of planning. I'm grateful to all those who played a part in it. There is no doubt this is a game changer for Gary, Indiana and the entire Northern Indiana region."
Hard Rock has a presence in 76 countries and is one of the most recognizable brands in the world. Spectacle Entertainment is confident the Hard Rock name will attract visitors throughout the region and beyond, maximize job creation, increase tax revenues, and greatly benefit the City of Gary and the State of Indiana.
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"It's an honor to partner with Spectacle Entertainment on this project, bringing the Hard Rock brand of world-class entertainment to Northern Indiana," said Jon Lucas, Chief Operating Officer of Hard Rock International. "This property will be the premier casino destination in the region."
About Hard Rock®:
With venues in 76 countries spanning 262 locations that include owned/licensed or managed Hotels, Casinos, Rock Shops® and Cafes - Hard Rock International (HRI) is one of the most globally recognized companies. Beginning with an Eric Clapton guitar, Hard Rock owns the world's most valuable collection of music memorabilia at more than 83,000 pieces, which are displayed at its locations around the globe. In 2018, Hard Rock International was recognized as a Forbes Magazine Top Employer for Women and Land Operator of the Year at the Global Gaming Awards. In 2019, Hard Rock International was honored as one of Forbes Magazine's America's Best Large Employers, Forbes Magazine's Top Employers for Women and No. 1 in J.D. Power's 2019 North America Hotel Guest Satisfaction Study among Upper Upscale Hotel Chains. Hard Rock destinations are located in the world's greatest international gateway cities, including its two most successful flagship properties in Florida and home to the world's first Guitar Hotel® in South Florida, where its headquarters are located. The brand is owned by HRI parent entity The Seminole Tribe of Florida. For more information on Hard Rock International visit www.Hardrock.Com or shop.Hardrock.Com.
About Spectacle Entertainment and Majestic Star Casino: Spectacle Entertainment's Majestic Star Casino, located on Buffington Harbor in Gary, Indiana, features a wide variety of slot, video poker and live table games. Acquired by Spectacle Entertainment in March 2019, Majestic Star Casino offers a 2000-space parking garage and a pavilion containing land-based restaurants, bars and meeting facilities. Spectacle Entertainment is an Indiana-owned company managed by Hoosiers with a deep experience in the gaming and entertainment industry for more information on gaming, entertainment and promotions visit www.Majesticstar.Com.
Contact: Christi HardestySpectacle Entertainmentchardesty@majesticstar.ComPhone: (219) 977-7913
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SOURCE Hard Rock International
Global Mobile Entertainment Market Worth US$ XX Billion By 2029
Jan 14, 2020 (Market Insight Reports via COMTEX) -- The report “Global Mobile Entertainment Market, By Applications (Mobile Music, Mobile Gaming, Mobile TV, Mobile Personalization, and Others), By Advertisement (Social Media Advertising, Online Video Advertising, Online Search Advertising, Mobile Location Based Advertising, and In-Game Advertising), and Region – Global Forecast to 2029″ Global mobile entertainment market is projected to grow from US$ XX billion in 2019 to US$ XX billion by 2029. Global mobile entertainment market is driven by growing number of smartphone and tablet users across the globe. In addition, growing number of free-to-use and pay-per-use applications, coupled with fastest-speed network providers are other major factors fuelling growth of the global mobile entertainment market. In the recent years, photo editing applications such as snapchat, Instagram, PicsArt etc. And popularity of photo sharing has increased rapidly among all age-group consumers. This factor is propelling growth of the global mobile entertainment market. Free services such as mobile TV, video-on-demand and online music are further fueling growth of the global market. Furthermore, use of high specifications games, e-commerce and social networking websites, applications, blogs, etc. By consumers are expected to drive growth of the global market over the forecast period. Nevertheless, change in user demographics is the major trend for the growth of the global mobile entertainment market.
Download sample copy of Mobile Entertainment Market : https://prophecymarketinsights.Com/Insight/request-sample/285
Key Highlights:
Key Market Insights from the report:
The global mobile entertainment market accounted for US$ XX billion in 2019 and is projected to register a moderate CAGR of XX% over the forecast period. The market report has been segmented on the basis of application, advertisement, and region.
Browse 60 market data tables* and 35 figures* through 140 slides and in-depth TOC on “Global Mobile Entertainment Market", By Applications (Mobile Music, Mobile Gaming, Mobile TV, Mobile Personalization, and Others), By Advertisement (Social Media Advertising, Online Video Advertising, Online Search Advertising, Mobile Location Based Advertising, and In-Game Advertising), and by Region (North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa) – forecast till 2029
To know the upcoming trends and insights prevalent in this market, click the link below:
https://prophecymarketinsights.Com/market_insight/Global-Mobile-Entertainment-Market-By-967
The prominent player operating in the global mobile entertainment market includes Activision Blizzard, Inc., Apple, Inc., AT&T, Inc., Electronic Arts, Inc., Facebook, Google LLC, Netflix, Inc., OnMobile Global Limited, Rovio Entertainment Corporation, and Snap Inc.
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