PENN Entertainment (PENN) Slides on Q3 Miss and ESPN Partnership Exit

Core Viewpoint - Invesco Small Cap Value Fund's Q4 2025 performance exceeded its benchmark, with a focus on economically sensitive stocks and a belief in the long-term potential of small-cap value equities [1] Group 1: Fund Performance - The Invesco Small Cap Value Fund achieved a quarterly return of 6.79%, outperforming the Russell 2000 Value Index's return of 3.26% [1] - For the full year, the fund generated a return of 17.64%, compared to 12.59% for the Russell 2000 Value Index [1] - Stock selection in the Information Technology sector contributed approximately 2.90% to the fund's relative performance, while health care and financials detracted [1] Group 2: Investment Strategy - Management maintained a greater exposure to economically sensitive stocks, indicating a strategic focus on sectors likely to benefit from economic growth [1] - The Russell 2000 Value Index is noted to trade at a historical P/E discount relative to the S&P 500, suggesting attractive long-term capital appreciation potential for small-cap value equities [1] Group 3: Company Highlight - Penn Entertainment, Inc. - Penn Entertainment, Inc. operates gaming and entertainment properties, including casinos and online sports betting platforms across the U.S. [2] - The stock of Penn Entertainment, Inc. had a one-month return of 25.67%, with shares trading between $11.65 and $20.61 over the last 52 weeks [2] - As of March 04, 2026, Penn Entertainment, Inc. closed at approximately $15.27 per share, with a market capitalization of about $2.28 billion [2] Group 4: Challenges Faced by Penn Entertainment, Inc. - Shares of Penn Entertainment, Inc. declined after third-quarter earnings missed expectations, and the announcement of ending its partnership with ESPN negatively impacted investor sentiment [3] - The company was not included in the list of the 40 Most Popular Stocks Among Hedge Funds heading into 2026, with 43 hedge fund portfolios holding the stock at the end of Q4, down from 44 in the previous quarter [4]