\n Posted on: February 17, 2026, 05:43h.\u00a0\n <\/p>\n
\n Last updated on: February 18, 2026, 04:28h.\n <\/p>\n
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- DME Capital sold nearly 700,000 shares of Penn Entertainment in Q4<\/strong><\/li>\n
- The hedge fund was also likely a seller of the regional casino stock in the prior<\/strong><\/li>\n
- The money manager still owns more than six million shares of the gaming stock<\/strong><\/li>\n<\/ul>\n
David Einhorn\u2019s DME Capital Management reduced its holdings of Penn Entertainment (NASDAQ: PENN) in the final three months of 2025.<\/p>\n
![\"PENN](\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/04\/PP2-858x448.jpg\")
An image for Penn Entertainment. David Einhorn\u2019s DME Capital reduced its stake in the stock in the fourth quarter. (Image: Penn Entertainment)<\/figcaption><\/figure>\n The hedge fund\u2019s latest Form 13F filed with the Securities and Exchange Commission<\/a> (SEC) indicates it entered 2026 owning 6.04 million shares of the regional casino operator, down from 6.77 million at the start of the fourth quarter.<\/strong><\/p>\n
It appears likely that the December quarter marked the second consecutive quarter in which DME reduced its exposure to Penn because it held 7.5 million<\/a> shares of the gaming stock at the end of June 2025. Penn remains the lone casino stock in the DME portfolio, but the hedge fund held several other consumer discretionary names at the end of 2025.<\/p>\n
Penn Weakness May Be Behind Einhorn Decision<\/h2>\n
Money managers aren\u2019t legally bound to disclose why they buy or sell stocks, so no official reason why DME reduced exposure to Penn has been given.<\/p>\n
\nOn the other hand, Einhorn\u2019s decision to trim his firm\u2019s Penn stake may be as simple as dissatisfaction with a stock that\u2019s shed nearly 46% of its value over the past year and the belief that some of that capital is better deployed elsewhere.<\/p>\n<\/div>\n
Form 13F\u2019s don\u2019t indicate exactly when transactions are made, but as it relates to DME and Penn, it\u2019s interesting to note that the fourth quarter included Penn\u2019s announcement that it was scrapping the troubled ESPN Bet venture. While that announcement<\/a> was viewed as a positive by many in the investment community, the stock continued trending lower following that announcement and currently resides at its lowest levels in roughly six years.<\/p>\n
In Other 13F News<\/h2>\n
Tuesday brought a flurry of Form 13F filings, plenty of which include gaming names. Appaloosa Management, the hedge fund controlled by Carolina Panthers owner David Tepper, dumped its stake in Caesars Entertainment (NASDAQ: CZR), another struggling casino stock. That hedge fund held the stock for more than two years, indicating it likely lost money on that investment.<\/p>\n
- The hedge fund was also likely a seller of the regional casino stock in the prior<\/strong><\/li>\n