Reasons to Hold Churchill Downs Incorporated (CHDN) for the Long-Term

The London Company, an investment management company, released “The London Company Small-Mid Cap Strategy” first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund returned 5% gross, (4.8% net) compared to a 3.4% return for the Russell 2500 Index. Sector allocation was a tailwind for the outperformance of the fund in the quarter, while stock selection slightly impacted the relative performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

The London Company Small-Mid Cap Strategy highlighted stocks like Churchill Downs Incorporated (NASDAQ:CHDN) in the first quarter 2023 investor letter. Headquartered in Louisville, Kentucky, Churchill Downs Incorporated (NASDAQ:CHDN) is a racing, online wagering, and gaming entertainment company. On June 30, 2023, Churchill Downs Incorporated (NASDAQ:CHDN) stock closed at $139.17 per share. One-month return of Churchill Downs Incorporated (NASDAQ:CHDN) was -2.12%, and its shares gained 41.03% of their value over the last 52 weeks. Churchill Downs Incorporated (NASDAQ:CHDN) has a market capitalization of $10.419 billion.

The London Company Small-Mid Cap Strategy made the following comment about Churchill Downs Incorporated (NASDAQ:CHDN) in its first quarter 2023 investor letter:

“Churchill Downs Incorporated (NASDAQ:CHDN) – CHDN outperformed Q1 as the company continues to execute well and allocate capital effectively. Of note, in 4Q last year, CHDN closed the $2.75B acquisition of Peninsula Pacific Entertainment (P2E), expanding its gaming and historical racing footprint. P2E followed smaller historical racing acquisitions in New Hampshire and Kentucky. Separately, the profitability of CHDN’s Twinspires online betting business has improved dramatically, and Kentucky just passed a bill legalizing sports betting, which we expect to be a positive development for CHDN. Overall, we continue to be impressed with the durable cash flows from CHDN’s various gambling businesses and we remain confident in the ability of management to add value through capital allocation.”

Churchill Downs Incorporated (NASDAQ:CHDN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Churchill Downs Incorporated (NASDAQ:CHDN) at the end of first quarter 2023 which was 23 in the previous quarter.

We discussed Churchill Downs Incorporated (NASDAQ:CHDN) in another article and shared the list of best annual dividend stocks to buy. In addition, please check out our hedge fund investor letters Q1 2023 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.