“Everi (EVRI) Sees Notable Strength in Its Financial Technology and Gaming Divisions”
Advisors of the Carillon Tower, an investment management firm, has published its second quarter 2021 “Carillon Eagle Small Cap Growth Fund” letter to investors – a copy of which can be found downloaded here. Small-cap stocks extended their recent streak of success into the second quarter, advancing for the fifth consecutive quarter after the sell-off at the start of the pandemic. Of the two style indices, the Russell 2000® Growth Index (up 3.92%) once again lagged its counterpart Russell 2000® Value Index (up 4.56%) over the past year. period, in what has become a common theme in recent times. Russell 2000 Growth’s individual sector returns were almost all positive, led by Energy (up 24.93%), despite its relatively modest weight in the benchmark. You can take a look at the top 5 holdings of the fund to get an idea of their 2021 bets.
In Carillon Tower Advisers’ Q2 2021 letter to investors, the fund mentioned Everi Holdings Inc. (NYSE: EVRI) and discussed his position on the company. Everi Holdings Inc. is a Las Vegas, Nevada-based financial services company with a market capitalization of $ 1.9 billion. EVRI has returned 59.23% year-to-date, while its 12-month returns are up 165.58%. The stock closed at $ 21.95 per share on September 15, 2021.
Here’s what Carillon Tower Advisers has to say about Everi Holdings Inc. in its Q2 2021 letter to investors:
“Everi develops and manufactures casino gaming systems as well as cash access solutions and related technologies for the gaming industry. The company reported quarterly results well above consensus expectations for revenue and profit. In addition, towards the end of the current quarter, Everi positively pre-announced the results for the coming quarter. The company is seeing noticeable strength in its financial technology and gaming divisions as positive trends in visits to the broader casino industry bode well for the company’s operations. “
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Based on our calculations, Everi Holdings Inc. (NYSE: EVRI) was unable to secure a spot on our list of 30 most popular stocks among hedge funds. EVRI was in 31 hedge fund portfolios at the end of the first half of 2021, compared to 24 funds in the previous quarter. Everi Holdings Inc. (NYSE: EVRI) has generated a return of 2.04% in the past 3 months.
The reputation of hedge funds as savvy investors has been tarnished over the past decade, as their hedged returns could not keep up with the unhedged returns of stock indices. Our research has shown that small cap hedge fund stock selection managed to beat the market by double digits every year between 1999 and 2016, but the margin for outperformance has shrunk in recent years. Nonetheless, we were still able to identify in advance a select group of hedge funds that have outperformed S&P 500 ETFs by 115 percentage points since March 2017 (see details here). We were also able to identify in advance a select group of hedge funds that underperformed the market by 10 percentage points per year between 2006 and 2017. Interestingly, the margin of underperformance of these stocks has increased in recent years. Investors who are long in the market and short on these stocks would have reported more than 27% per year between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
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Disclosure: none. This article was originally published on Monkey initiate.