Wynn Resorts Ltd

We leaned into a theme the market seems to have forgotten about entirely: businesses whose product is a physical, human experience. We bought Las Vegas Sands and MGM Resorts, and we added meaningfully to Wynn Resorts. Together, gaming and hospitality became one of our larger thematic exposures by the end of the quarter. The logic here is straightforward: The integrated resort is a moat made of concrete, square footage, and licenses that governments hand out very rarely. It is the kind of asset that does not get disrupted by better software. Indeed, we are bullish on the resurgence of in-person gaming.

Wynn Resorts, Limited is mentioned in the context of the Fund's performance and holdings, but there is no explicit directional argument made about the company's future prospects or valuation.

We invested in Wynn Resorts, Limited, a luxury resort and casino operator which currently owns integrated gaming properties in Las Vegas, Macau, and Boston. We took advantage of stock weakness due to potential tariffs, believing we were buying at attractive prices. Our analysis showed we were acquiring the stock at trough valuation multiples on both the Las Vegas and Macau properties, with upside from the Al Marjan Island project in the UAE for essentially free. Wynn's premium service offering allows it to command higher room rates and gaming revenue per visitor, insulating it during challenging economic periods. We are bullish on the prospects for this integrated resort and think the stock is ascribing almost no value to the project currently.

Wynn Resorts (WYNN) and Las Vegas Sands (LVS) provide a calculated bridge to the Chinese economy—without the direct exposure and risk that typically come with mainland investments. These companies maintain significant assets in Macau, the world’s largest gaming hub, which functions as a unique access point to Chinese consumer demand. As Chinese wealth creation resumes and regional travel flows normalize, we believe companies like WYNN and LVS are positioned to be long-term beneficiaries. This dual exposure—Asian growth through American frameworks—offers asymmetric return potential with a margin of safety.