Is it Still Safe to Invest in Wynn Resorts (WYNN)?
Baron Funds, an investment management firm, released its “Baron Real Estate Income Fund” third quarter 2023 investor letter, a copy of which can be downloaded here. In the first nine months of 2023, the Fund has increased 1.20%, outperforming the REIT Index, which declined 2.89%. As of September 30, 2023, the Fund has maintained its top 3% ranking among all real estate funds for its 5-year performance period. Spare some time to check the fund’s top 5 holdings to know more about their top bets for 2023.
In its Q2 2023 investor letter, Baron Real Estate Income Fund mentioned Wynn Resorts, Limited (NASDAQ:WYNN) and explained its insights for the company. Founded in 2002, Wynn Resorts, Limited (NASDAQ:WYNN) is a Las Vegas, Nevada-based gambling company with a $10.0 billion market capitalization. Wynn Resorts, Limited (NASDAQ:WYNN) delivered a 6.97% return since the beginning of the year, while its 12-month returns are up by 57.17%. The stock closed at $88.22 per share on October 19, 2023.
Here is what Baron Real Estate Income Fund has to say about Wynn Resorts, Limited (NASDAQ:WYNN) in its Q2 2023 investor letter:
"The shares of Wynn Resorts, Limited, an owner and operator of hotels and casino resorts, declined 14.5% during the period held in the third quarter. We remain optimistic about the multi-year prospects for the company. We believe the re-emergence of business activity in Macau will drive additional shareholder value. If cash flow returns to the level achieved in 2019 prior to COVID-19, we believe Wynn’s shares will increase to $150 per share, or more than 60% higher than where they have recently traded.
We believe additional drivers for future value creation beyond a re-emergence in Macau business activity include: (i) our expectation for long-term growth opportunities in the company’s U.S.-centric markets of Las Vegas and Boston, including an expansion of Wynn’s Encore Boston Harbor resort; (ii) Wynn’s plans to develop an integrated resort in the United Arab Emirates with 1,500 hotel rooms and a casino that is similar in size to that of Encore Boston Harbor; (iii) opportunities to improve cash-flow margins by rightsizing labor and achieving lower staff costs in Macau; (iv) the possibility that Wynn is granted a New York casino license in 2023; and (v) an expansion in the company’s valuation multiple to levels achieved prior to the pandemic."
A close up of a slot machine surrounded by anonymous people gambling. Editorial photo for a financial news article. 8k. --ar 16:9
Our calculations show that Wynn Resorts, Limited (NASDAQ:WYNN) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. Wynn Resorts, Limited (NASDAQ:WYNN) was in 47 hedge fund portfolios at the end of the second quarter of 2023, compared to 46 funds in the previous quarter. Wynn Resorts, Limited (NASDAQ:WYNN) delivered a -16.92% return in the past 3 months.
We also discussed Wynn Resorts, Limited (NASDAQ:WYNN) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q3 2023 page.
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Disclosure: None. This article is originally published at Insider Monkey.
