We recently compiled a list of the HG Vora Capital Management’s Stock Picks For 2025. In this article, we are going to take a look at where Boyd Gaming Corporation (NYSE:BYD) stands against the other stocks.
HG Vora Capital Management was founded in 2009 as a hedge fund specializing in investing in event-driven, credit, and distressed special situations. The New York-based hedge fund has more than $5 billion in assets under management and reported more than $1.3 billion in securities in its latest 13F filing. While it is not positioning itself as an activist fund, HG Vora Capital has engaged with companies’ management on several occasions. As we go through some of HG Vora Capital’s stock picks, we will see some examples of the interactions that the fund had or is having with the companies it’s invested in.
Parag Vora, the founder of HG Vora, is a seasoned investor with decades of experience. Prior to founding HG Vora, Parag worked at Silver Point Capital, focusing on distressed assets and event-driven opportunities. Before Silver Point, Parag served as a Vice President in the Investment Banking Division at Goldman Sachs, advising real estate and consumer companies on M&A and leveraged financing.
HG Vora usually holds a relatively concentrated portfolio. However, over the last several years, the fund’s equity portfolio somewhat scaled down. At the end of 2021, HG Vora held 24 positions with a total value of $2.79 billion, according to its 13F filing for the period. It’s worth mentioning that such fluctuations in portfolio size can be observed during previous years as well. The reduced equity portfolio size could be attributed to a more attractive debt market driven by higher interest rates or other catalysts. During a panel at the Global Alts 2023 event, Parag said that it was “an amazing time to own safer first-lien debt where you can make equity-like returns.”
In its Q4 2024 13F filing, HG Vora Capital reported ownership in 10 companies as of the end of 2024. In a subsequent filing with the Securities and Exchange Commission, HG Vora disclosed closing its only healthcare bet – ModivCare Inc (NASDAQ:MODV), in which it had previously held 1.0 million shares.
Currently, most companies in HG Vora Capital’s 13F portfolio are operating in the resort and casino industry. Most holdings are long-term investments that Parag Vora’s fund has been bullish on for at least three years.
A close-up of a roulette wheel in a luxurious casino.
Boyd Gaming Corporation (NYSE:BYD)
Shares held by HG Vora Capital Management: 2.0 million
Value of Position: $145.08 million
In Boyd Gaming Corporation (NYSE:BYD), HG Vora Capital trimmed its stake by a third during the fourth quarter. In contrast with Penn Entertainment, the fund has not engaged with Boyd Gaming Corp and has held shares since at least the fourth quarter of 2020 seeing the stock gain more than 80% since then. Boyd Gaming Corporation (NYSE:BYD) is a diversified casino operator that has properties across 10 US states, including California and Nevada. Moreover, similar to other casino operators mentioned earlier, Boyd has also expanded into the online gambling segment of the market. Recently, Boyd Gaming Corporation has disclosed its financial results for the fourth quarter, with both EPS of $1.06 and revenue of $1.04 billion coming in stronger than expected. Moreover, Boyd Gaming has been paying dividends for the past several years and last year it raised the payout to $0.17 per share.
Overall BYD ranks 4th on our list of HG Vora Capital Management’s stock picks for 2025. While we acknowledge the potential of BYD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BYD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
