Wynn stocks are down 2.6% at the start of this year right after Steve Wynn resigned since the first week of February as the CEO and chairman of the company.
In late January, the Wall Street Journal published detailed allegations of decades of the casino tycoon's sexual misconduct, to which the ex-CEO denied such accusations, saying he did not commit anything wrong and calling it ‘preposterous'.
Files have shown that Moore Capital, owned by Louis Bacon, bought casino stocks in the 4th quarter of 2017.
Yesterday, according to a required quarterly filing with the U.S. Securities and Exchange Commission, the hedge fund took the following:
- A new 50,000 share stake in Wynn Resorts
- A 1.88 million share stake in Caesars Entertainment
- 100,000 share stake in Boyd Gaming
This information is around 45 days old and possibly does not reflect the fund's current holdings.
This year, shares of Caesars are up around 1.2% whereas Boyd Gaming is up 3.8%.
On the non-gambling category, Moore Capital also took new shares of 375,000 in Abercrombie & Fitch. The casual wear retailer, which struggled last year, raised its 4th quarter guidance in late January to the high single digits. So far this year, shares are up 26.2%.
Also, Moore Capital bought other new shares in the leisure and retail categories, such as Burlington Stores, Deckers Outdoor, Marriott, McDonald's Ralph Lauren, Ross Stores and Starbucks.
The hedge fund also purchased on technology stocks, but significantly dropped on bank shares. Moore Capital increased its holdings on Microsoft and Apple, but decreased its ownership of Amazon.com and Alibaba. It decreased its holdings of Morgan Stanley, Citigroup and Bank of America, while finally dissolving its stake in J.P. Morgan Chase.
According to Forbes.com, Moore Capital was founded by New Yorker Louis Bacon in 1989, using trading profits and a small inheritance. The hedge fund manages $13.4 billion in assets.
Source:
https://www.cnbc.com/2018/02/14/moore-capital-bought-wynn-resorts-other-casino-stocks.html
https://www.forbes.com/profile/louis-bacon/
