Meridian Hedged Equity Fund on MGM Resorts International
Thesis
MGM combines a diversified portfolio of destination resorts with significant digital exposure through BetMGM and additional international growth opportunities. The fund highlighted resilient high-end leisure demand and a rising convention room-night mix on the Las Vegas Strip, alongside strong premium gaming volumes and a 17% mass-market share for MGM China. Investor recognition of casino operators' intrinsic cash flow value improved during the quarter, and a non-binding cash acquisition proposal at $48.30 per share provided an additional valuation catalyst.
“Growth was further bolstered by MGM China, which maintained a strong 17% mass market share and benefited from robust premium gaming volumes in Macau.”