
During the first quarter, David Einhorn’s DME Capital Management boosted its stake in Penn Entertainment (NASDAQ: PENN) as another hedge fund prepared for a proxy battle with the regional casino company.
A form 13F filing with the Securities and Exchange Commission (SEC) released after the US markets closed Thursday reveals that Einhorn’s firm increased its ownership in Penn to roughly 6.27 million shares in the initial quarter of 2025, up from about 5.75 million shares. Previously referred to as Greenlight Capital, DME Capital commenced its stake in Penn during the initial quarter of 2024. Thursday’s 13F indicates that the investor has increased its stake in the gaming firm for at least the second time.
At present, Penn is the sole gaming stock in the DME portfolio and is among the few names that the hedge fund invested in during the first quarter. The investment manager has a history of engaging in gaming stocks through both long and short investments.
Major Coincidence in Timing of Einhorn 13F
The regulatory paperwork verifying DME Capital's addition to its Penn investment was received just hours after the casino operator's board of directors issued a letter to investors, making accusations and delivering severe criticism aimed at HG Vora, the hedge fund engaged in a proxy battle with the gaming company.
In the letter, Penn directors claimed Vora violated state gaming regulations to secure three board positions. The directors stated that the hedge fund urged the gaming company to evaluate a buyback strategy financed by debt, which would necessitate considerable, possibly unacceptable financial manipulation, also noting that Vora contacted the gaming company to propose a strategic review in preparation for a sale.
The Penn/Vora dispute continues and may reach a climax at the gaming firm’s annual meeting next month, where shareholders will choose between the board of directors suggested by the gaming company and the “Gold Card” proposal offered by Vora.
While it's evident that the Penn/Vora controversy didn’t stop DME Capital from increasing its Penn investment, Einhorn's perspective on the situation remains uncertain. Casino.org contacted for a statement regarding the issue, including a question about how DME plans to vote next month, but at this time, that request for comments has not been recognized.
DME has reduced the average cost of its Penn shares by increasing its stake during downturns. Its original average buying price was $22.69, but it’s probably significantly lower than that amount now. The stock finished at $15.81 on Thursday.
Additional 13F Gaming Updates
In other 13F updates related to gaming stocks, Stanley Druckenmiller’s Duquesne Family Office notably raised its investment in FanDuel parent Flutter Entertainment (NYSE: FLUT) in the first quarter to 377K shares, up from only 18,100 in the previous quarter.
3G Capital reduced its ownership in DraftKings (NASDAQ: DKNG) during the initial quarter of 2025. Today's set of 13F filings also included some intriguing political news.
Soros Fund Management initiated a new stake in Las Vegas Sands (NYSE: LVS) during the March quarter. Investor George Soros and his family have been major contributors to the Democratic party and its candidates for many years, whereas Sands' top individual investor — Dr. Miriam Adelson — is one of President Trump's foremost supporters and regularly donates to the Republican party.