market folly

Jonathan Salinas' hedge fund firm, Plymouth Lane Capital, has filed a 13G with the SEC regarding its position in Scientific Games Corp (SGMS).  Per the filing, Plymouth Lane now owns 5.5% of the company with over 4.62 million shares.

This means their position size has increased by over 3.66 million shares since the end of the first quarter.  The filing was made due to portfolio activity on March 9th.


About Plymouth Lane Capital

This is the first time this hedge fund has been covered on the site.  Plymouth Lane primarily operates an equity strategy and was launched in April 2013.  Prior to founding Plymouth Lane, Jon Salinas worked at Marble Arch Investments and earned his MBA from Columbia Business School.

At a prior Columbia Business School conference, Salinas noted that you have to focus on the margin of safety if it's an event-driven idea.  But if it's a compounder-type business, he said you have to have high confidence that earnings will compound at the rate expected.  He also mentioned that if you're taking concentrated positions, it's detrimental to let thesis creep go unnoticed.  If evidence contrary to your thesis pops up, you have to be able to recognize it and act.


About Scientific Games Corp

Per Google Finance, Scientific Games is "a developer of technology-based products, services and is a supplier of solutions to lottery and gaming organizations across the world. The Company’s products and services include instant lottery games, lottery gaming systems, terminals and services, and Internet applications, as well as server-based interactive gaming machines and associated gaming control systems. The Company provides products and services, such as instant and draw-based lottery games, electronic gaming machines and game content, server-based lottery and gaming systems, sports betting technology, loyalty and rewards programs, and social, mobile and interactive content and services. The Company operates in three segments: Instant Products, Lottery Systems, and Gaming."