MGM Resorts International emerged as the most added consumer discretionary stock among hedge funds in the second quarter of the year, according to a report by Casino.org citing analysis by Morgan Stanley of the latest 13F filings.
Hedge fund ownership of the Las Vegas operator rose 4.8% between April and June – the largest increase across all consumer cyclical names. The buying spree sets MGM apart from sector peers, with no other gaming operators ranking in the top three discretionary additions.
The bets have, so far, paid off. After sliding to $25.79 in April on tariff-driven weakness and short interest pressure, MGM’s shares rebounded sharply to trade above $36. This rally came despite muted Q2 results from the Las Vegas Strip, where MGM is the dominant operator. Hedge funds appeared to focus instead on catalysts including BetMGM’s online growth, Macau’s GGR recovery, and the potential for New York regulators to approve a full gaming license for MGM’s Empire City Casino.
MGM remains a long-time favourite among hedge fund managers with a history of trading around sector volatility. The Q2 positioning suggests managers were willing to lean into short-term weakness in search of longer-term catalysts, though whether those allocations hold will become clearer in the next 13F cycle later this year.
