JDP Capital Management, an investment management company, released its fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. 2024 proved to be an excellent year for the market and an even more impressive one for the fund. In the fourth quarter, the fund generated a gain of 10.4%, resulting in a total return of 47.9% for the year, net of fees for investors. In comparison, the S&P 500 recorded a 2.4% increase in the fourth quarter and a 25% rise for the entire year, assuming dividends were reinvested back into the index. For more information on the fund’s best picks in 2024, please check its top five holdings.
In its fourth quarter 2024 investor letter, JDP Capital Management emphasized stocks such as Caesars Entertainment, Inc. (NASDAQ:CZR). Caesars Entertainment, Inc. (NASDAQ:CZR) is a gaming and hospitality company. The one-month return of Caesars Entertainment, Inc. (NASDAQ:CZR) was -18.65%, and its shares lost 40.25% of their value over the last 52 weeks. On March 31, 2025, Caesars Entertainment, Inc. (NASDAQ:CZR) stock closed at $25.00 per share with a market capitalization of $5.3 billion.
JDP Capital Management stated the following regarding Caesars Entertainment, Inc. (NASDAQ:CZR) in its Q4 2024 investor letter:
“Caesars Entertainment, Inc. (NASDAQ:CZR) was down 30% in 2024. The position has been a loser so far, dropped about 17% below cost, equivalent to the valuation just 3 months in to COVID when Vegas was all but shut down. I have spoken about CZR at length in past letters so I will spare you from re-reading the pitch.
In 2024 CZR’s post-COVID growth rate started to slow and by 3Q 2024 revenue and EBITDA were essentially flat with YoY. Fears about a consumer spending hangover, combined with rising floating rate interest rates, led to the stock being put the penalty box most of the year.
Looking ahead at 2025 Caesars expects to generate materially more free cash flow as massive multi year capex projects wrapped up in 2024, and more states legalize online gaming. Caesars is also a beneficiary of the transition to online gaming which will drive higher returns on capital and free cash flow in industry with otherwise average returns. …” (Click here to read the full text)
A general view of a luxury resort casino, surrounded by a beautiful landscape and illuminated at night.
Caesars Entertainment, Inc. (NASDAQ:CZR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held Caesars Entertainment, Inc. (NASDAQ:CZR) at the end of the fourth quarter compared to 67 in the third quarter. While we acknowledge the potential of Caesars Entertainment, Inc. (NASDAQ: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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We covered Caesars Entertainment, Inc. (NASDAQ:CZR) in another article, where we shared the list of best casino stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.