Churchill Downs (CHDN) Gained from Growth in Its HRM Facilities

Group 1 - The London Company Mid Cap Strategy reported a portfolio return of 3.2% in Q4 2025, outperforming the Russell Midcap Index which increased by 0.2% [1] - The Russell 3000 Index rose by 2.4% in Q4 2025, marking the third consecutive quarter of higher returns for US equities [1] - Stock selection and sector exposure were significant contributors to the portfolio's relative performance during the quarter [1] Group 2 - Churchill Downs Incorporated (NASDAQ:CHDN) closed at $96.19 per share on February 24, 2026, with a one-month return of -2.74% and a 52-week loss of 16.14% [2] - Churchill Downs has a market capitalization of $6.745 billion [2] - The company showed strong results driven by growth from its HRM facilities and increasing optimism for 2026, leading to its outperformance after earlier underperformance [3] Group 3 - The London Company Mid Cap Strategy views Churchill Downs positively due to its cash-generative assets, good capital allocation track record, and reinvestment opportunities [3] - Churchill Downs engaged in share repurchases in response to stock price weakness, which supports the view on capital allocation [3] - Despite the potential of Churchill Downs, the company is not among the 30 most popular stocks among hedge funds, with 50 hedge fund portfolios holding its stock at the end of Q4, up from 45 in the previous quarter [5]