The London Company, an investment management company, released “The London Company SMID Cap Strategy” first quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets posted solid returns in Q1. The portfolio gained 9.4% (9.2% net) during the quarter compared to 6.9% returns for the Russell 2500 Index. Both stock selection and sector exposure led the portfolio to outperform in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
The London Company SMID Cap Strategy featured stocks like Churchill Downs Incorporated (NASDAQ:CHDN) in the first quarter 2024 investor letter. Headquartered in Louisville, Kentucky, Churchill Downs Incorporated (NASDAQ:CHDN) is a racing, online wagering, and gaming entertainment company. On May 3, 2024, Churchill Downs Incorporated (NASDAQ:CHDN) stock closed at $134.02 per share. One-month return of Churchill Downs Incorporated (NASDAQ:CHDN) was 10.63%, and its shares lost 9.53% of their value over the last 52 weeks. Churchill Downs Incorporated (NASDAQ:CHDN) has a market capitalization of $9.876 billion.
The London Company SMID Cap Strategy stated the following regarding Churchill Downs Incorporated (NASDAQ:CHDN) in its first quarter 2024 investor letter:
“Churchill Downs Incorporated (NASDAQ:CHDN) – CHDN underperformed during 1Q, but the business continued to perform well. With the exception of some softness in parts of the casino business, CHDN is executing well and demonstrating exemplary capital allocation. Ticket sales for the 2024 Kentucky Derby are on trend; the historical racing machine business is performing well, and TwinSpires (online horse betting) has been solid. The negative on CHDN is that leverage remains elevated following a meaningful 2022 acquisition. We view the deal as strategically sound, and we expect leverage to come down next year with robust cash generation and EBITDA growth.”
A city skyline looking down on a busy racetrack with jockeys on horseback.
Churchill Downs Incorporated (NASDAQ:CHDN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Churchill Downs Incorporated (NASDAQ:CHDN) at the end of the fourth quarter which was 24 in the previous quarter.
We previously discussed Churchill Downs Incorporated (NASDAQ:CHDN) in another article, where we shared the list of best gambling stocks to buy. In addition, please check out our hedge fund investor letters Q1 2024 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.