Churchill Downs (CHDN) Aims to Shed Its Regional Casino Portfolio to Boost Growth

1 day ago 3

Soumya Eswaran

Fri, May 22, 2026 astatine 8:58 AM CDT 3 min read

Meridian Funds, managed by ArrowMark Partners, released its first-quarter 2026 capitalist missive for “Meridian Growth Fund”. A transcript of the missive tin beryllium downloaded here. The US equities marketplace started 2026 owed to commercialized argumentation uncertainty and geopolitical risks. Initial optimism from home institution assurance and the Federal Reserve easing waned pursuing accrued tariffs and subject strikes against Iran. The worth outperformed crossed the full market-cap spectrum. Against this backdrop, the Meridian Growth Fund (the “Fund”) returned -7.90%, trailing the Russell 2500 Growth Index benchmark, which returned -3.52%. The underperformance was driven by manufacture allocation, portion banal enactment was a meaningful affirmative contributor. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Meridian Growth Fund highlighted stocks similar Churchill Downs Incorporated (NASDAQ:CHDN). Churchill Downs Incorporated (NASDAQ:CHDN) is simply a US-based racing, online wagering, and gaming company. On May 21, 2026, Churchill Downs Incorporated (NASDAQ:CHDN) banal closed astatine $85.53 per share. One-month instrumentality of Churchill Downs Incorporated (NASDAQ:CHDN) was -16.06%, and its shares mislaid 8.58% implicit the past 52 weeks. Churchill Downs Incorporated (NASDAQ:CHDN) has a marketplace capitalization of $5.96 billion.

Meridian Growth Fund stated the pursuing regarding Churchill Downs Incorporated (NASDAQ:CHDN) successful its Q1 2026 capitalist letter:

"Churchill Downs Incorporated (NASDAQ:CHDN) is simply a diversified gaming, racing, and amusement institution anchored by ownership of the Kentucky Derby, the astir prestigious and invaluable franchise successful equine racing, on with humanities racing machines and a portfolio of determination gaming properties. The institution is positioned to unlock important worth done a imaginable divestiture of its determination casino portfolio, which would amended maturation visibility and trim leverage. Shares declined during the 4th aft reporting mixed results— beardown show successful unrecorded racing and humanities racing was offset by continued weakness successful the determination gaming segment, portion the lack of immoderate update connected a imaginable casino divestiture frustrated investors expecting a near-term catalyst."

Wells Fargo Raises Churchill Downs (CHDN) Target, Sees Stable Gaming Trends Into 2026

Churchill Downs Incorporated (NASDAQ:CHDN) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 50 hedge money portfolios held Churchill Downs Incorporated (NASDAQ:CHDN) astatine the extremity of the 4th quarter, up from 45 successful the erstwhile quarter. While we admit the imaginable of Churchill Downs Incorporated (NASDAQ:CHDN) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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