Raising eyebrows this week is news that a New York-based hedge fund – Elliott Associates – has claimed a 5 percent ownership stake in Boyd Gaming Corp.
Word of the small ownership stake sparked “rampant speculation in the investment community.”
“Scenarios ranged from a corporate takeover to moving the company’s casinos into a real estate investment trust,” the Las Vegas Review Journal is reporting.
So what’s behind all of the buzz? Elliott, we’re told, has a penchant for buying into “distressed or undervalued companies.”
If the latest chatter is prescient, the hedge fund may be setting itself up for a bigger investment at some point down the road.
For now, Boyd Gaming isn’t saying much, only telling the Review Journal that it appreciates its investors.
“We have noted Monday’s filing with the SEC,” the statement reads, “and we always appreciate new investments in the company.”