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In what is termed as an after effect of the ongoing US–China trade war, the US hedge funds have increased their stakes in casino companies. Here are some examples.
Starboard Value, the hedge fund that has investments in the IT security firm Symantec and consumer goods companies Newell Brands, has pumped in over $ 500 million into MGM Resorts International. HG Vora, another hedge fund, has bought shares of Caesars Entertainment. HG Vora already has stakes in MGM, in which some other hedge funds such as Canyon Capital, Soroban Capital Partners and Eminence Capital also hold shares.
MGM shares rose 2.7 per cent in stock market, while Caesars Entertainment rose 1.2 per cent, Wynn Resorts added 3 per cent and Las Vegas Sands rose 0.5 per cent Caesars said the summer could be weak due to unusually light business deals and the lack of successful events in the period such as Conor McGregor/Floyd Mayweather’s match last year.
If you are wondering what this has to do with US–China trade war, the increased US investment and resultant policy changes could harm Chinese consumer spending and reduce revenue in Macao, which is the largest gaming center in the world.
Source: The Financial Times
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