Another institutional investor ups LV Sands investment
Fidelity Investments is not the only institutional investor taking a gamble on Las Vegas Sands Corp.
Paperwork filed with the Securities and Exchange Commission had shown Marisco Capital Management had a 13.9 percent stake in the company, controlling more than 89.5 million shares.
On Wednesday, Fidelity disclosed a 14.9 percent ownership stake in the company, controlling 108.4 million shares.
With the price per share of Las Vegas Sands averaging a little more than $5 much of the past month, institutional investors believe the low cost is worth the risk.
Las Vegas Sands has 537.29 million shares outstanding after the company issued new stock last month in order to raise more than $2.1 billion. In the process, Las Vegas Sands Chairman and CEO Sheldon Adelson saw his controlling stake in the company drop almost 20 percent to 51.3 percent.
Anyone acquiring more than 10 percent of a casino company or slot maker licensed in Nevada has to be licensed by gaming authorities. Institutional investors can acquire up to 15 percent before a licensing process is triggered.
Institutional investors, such as Fidelity and Marsico, can receive a waiver from Nevada gaming regulators to avoid the costly gaming licensing process.
Investment houses such as Fidelity and Marsico own pieces of many of the large publicly traded gaming companies.