Major investors split on DraftKings as hedge funds exit gaming stocks
In the third quarter of 2025, a prominent hedge fund sold its entire position in DraftKings, though the fund's identity remains unclear. Meanwhile, notable investors like Cathie Wood, Keith Meister, and David Einhorn made significant changes to their gaming stock portfolios.
Whale Rock Capital Management exited its DraftKings (NASDAQ: DKNG) position entirely, while Corvex Management reduced its stake in MGM Resorts International (NYSE: MGM) to 5.38 million shares. David Einhorn's DME Capital Management also cut its holdings in Penn Entertainment (NASDAQ: PENN) to approximately seven million shares. Corvex Management further reduced its position in IAC/InterActiveCorp (NASDAQ: IAC) to about two million shares.
In a contrasting move, Harry Sloan, Director of DraftKings, purchased an additional 25,000 shares, increasing his holdings to 249,712 shares. Notably, Cathie Wood continued to hold and even bought more DraftKings shares through her ETFs during this period.
These changes in investment strategies indicate a shifting landscape in the gaming stock market. While some prominent investors reduced or eliminated their holdings, others, like Cathie Wood and Harry Sloan, showed confidence in DraftKings' future prospects on the NASDAQ Composite.
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