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 Caesars Entertainment, Inc. (NASDAQ:CZR) 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 general view of a luxury resort casino, surrounded by a beautiful landscape and illuminated at night.
Caesars Entertainment, Inc. (NASDAQ:CZR)
Shares held by HG Vora Capital Management: 2.25 million
Value of Position: $75.20 million
On the other hand, during the fourth quarter of 2024, HG Vora Capital Management boosted its position in Caesars Entertainment, Inc. (NASDAQ:CZR) by 1.75 million shares. The bet has paid off so far this year, as the stock is more than 18% in the green. Interestingly enough, HG Vora added Caesars Entertainment, Inc. (NASDAQ:CZR) during the fourth quarter of 2021, when the stock was trading around its all-time highs. As one of the most well-known brands for casinos and hospitality in Las Vegas, Caesars Entertainment stands to benefit from a rebound in tourism and its return to pre-pandemic levels, according to the latest trends. However, the company’s last quarterly results showed a decline in revenue both for the Las Vegas segment and Regional, of 1.3% and 7.6%, respectively. Nonetheless, Caesars Entertainment, Inc. (NASDAQ:CZR) has been aggressively expanding in the online segment and for the third quarter of 2024, the Digital segment posted revenue growth of nearly 41% to $303 million, helping inch up the total quarterly revenue by 2.6% to $2.9 billion. At the same time, the company swung to a loss of $0.04 per share and missed the consensus estimate by $0.25.
Overall CZR ranks 8th on our list of HG Vora Capital Management’s stock picks for 2025. While we acknowledge the potential of CZR 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 CZR 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.
