Full House Resorts (FLL) Has Fallen 6% in Last One Year, Underperforms Market

If you are looking for the best ideas for your portfolio you may want to consider some of Artko Capital’s top stock picks. Artko Capital, an investment management firm, is bearish on Full House Resorts Inc (NASDAQ:FLL) stock. In its Q2 2019 investor letter – you can download a copy here – the firm discussed its investment thesis on Full House Resorts Inc (NASDAQ:FLL) stock. Full House Resorts Inc (NASDAQ:FLL) is a casino developer and operator based in Nevada.

On July 22, 2019, Artko Capital had released its Q2 2019 investor letter. The investment firm said that it exited from Full House Resorts Inc (NASDAQ:FLL) stock in Q2 2019. Full House Resorts Inc (NASDAQ:FLL) stock has posted a return of -6.2% in the trailing one year period, underperforming the S&P 500 Index which returned 12.6% in the same period. This suggests that the investment firm was right in its decision. On a year-to-date basis, Full House Resorts Inc (NASDAQ:FLL) stock has fallen by 41.2%.

In Q2 2019 investor letter, Artko Capital said the fund posted a return of 15.1% in the second quarter of 2019, outperforming fund’s benchmark the S&P 500 Index which returned 4.3% in the same period. Let’s take a look at comments made by Artko Capital about Full House Resorts Inc (NASDAQ:FLL) stock in the Q2 2019 investor letter.

“We have exited our 2% Enhanced Portfolio investment in Full House Resorts at $2.10 price levels, resulting in a 20% gain over the almost four years that we have held it since our fund’s launch. Full House has been a fun investment in a handful of casinos scattered all over the United States led by a respected industry veteran, Dan Lee, who has done a fantastic job of turning around operations, re-financing the balance sheet, and taking on both large and small growth opportunities. However, we invest in our Enhanced Portfolio positions with the expectation of significant upside for the risks we take on and unfortunately FLL has not lived up to our expectations to the point where we felt capital would be better deployed in new opportunities.”

In Q1 2020, the number of bullish hedge fund positions on Full House Resorts Inc (NASDAQ:FLL) stock decreased by about 33% from the previous quarter (see the chart here), so a number of other hedge fund managers seem to agree with FLL’s downside potential. Our calculations showed that Full House Resorts Inc (NASDAQ:FLL) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below

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