In this article we’re going to take a closer look at Parag Vora‘s HG Vora Capital Management’s Stock Picks for 2025.
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. Without any further ado, let’s take a look at HG Vora Capital Management’s stock picks heading into 2025.
9. United Parks & Resorts Inc. (NYSE:PRKS)
Shares held by HG Vora Capital Management: 500,000
Value of Position: $28.1 million
In United Parks & Resorts Inc. (NYSE:PRKS), HG Vora has held shares since the third quarter of 2023. During the last three months of 2024, the position was slashed by more than 60%. United Parks & Resorts Inc. (NYSE:PRKS) is a US-based operator of theme parks and recreational destinations, holding brands like SeaWorld and Busch Gardens in its portfolio. Given that vacations are often seen as a discretionary expense, United Parks & Resorts Inc. (NYSE:PRKS) has a lot riding on where the US economy is headed in terms of inflation and cost of living. Moreover, Universal Orland Resort is planning to open Universal Epic Universe. With many of United Parks & Resorts Inc. (NYSE:PRKS) located in Florida, as well, the company will face higher competition from a new attraction. On the other hand, the new attraction could boost the number of tourists in the region, some of whom might choose to visit some of United Parks & Resorts Inc. (NYSE:PRKS)’s locations. Moreover, trading at just 11.3 times its forward earnings, United Parks & Resorts deserves more attention for a potential investment.
