- VIP list is collection of stocks appearing in hedge funds’ top 10 holdings
- Flutter is lone gaming name to make the cut
Flutter Entertainment (NYSE: FLUT) earned another accolade: an appearance on the Goldman Sachs Hedge Fund VIP List.
That grouping, which is widely observed by professional investors, is a collection of stocks that “matter the most” to hedge funds — importance that’s gauged by frequency of appearance among hedge funds’ top 10 positions.
From an implementation standpoint, the Hedge Fund VIP list represents a tool for investors seeking to ‘follow the smart money’ based on 13-F filings,” notes Ben Snider, Goldman Sachs senior equity strategist. “By construction, the VIP list identifies the 50 stocks whose performance will largely influence the long side of many fundamentally driven hedge funds.”
With second-quarter 13F filing season drawing to a close, it’s clear that 22 hedge funds count shares of the FanDuel parent among their top 10 holdngs.
Flutter Stock Outpacing Berkshire Hathaway, Netflix
While hedge funds have long been involved with gaming equities as both long and short positions, Flutter is the only stock from the industry currently on the Goldman VIP list. The kudos for the sportsbook giant don’t end there.
Goldman points out that with 22 hedge funds counting Flutter as one of their top holdings, that’s ahead of the 21 that can say the same of their positioning in Berkshire Hathaway (NYSE: BRK.B) and Netflix (NASDAQ: NFLX).
To be fair, Berkshire Hathaway and Netflix are likely more widely owned by hedge funds than is Flutter, but the gaming stock has climbed the ranks in short order as it’s just over a year removed from moving its primary listing to New York from London.
Part of the reason Flutter executed that move was so the stock would get more attention among US professional investors and it’s clear that decision is paying off.
More Pros Could Flock to Flutter Stock
There are reasons to believe Flutter could climb the ranks of the Goldman Sachs Hedge Fund VIP List or, at the very least, become more widely held by fund managers and other professional investors. For example, the stock was added to the Russell 3000 Index in late June, meaning the current quarter will be the first full one in which the shares reside in that widely followed gauge.
That’s prompted speculation it’s a matter of “when” not “if” regarding the gaming equity’s inclusion in the S&P 500. Recent additions to that gauge have smaller market caps than the FanDuel owner and that could be a sign that S&P Dow Jones Indices can keep the gaming stock out of the S&P 500 for only so long.
Investors looking to access the entirety of the Goldman list can consider the Goldman Sachs Hedge Industry VIP ETF (GVIP). Flutter is a top 10 holding in that exchange traded fund (ETF).
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