Shares of Boyd (BYD, Financial), a regional casino gaming company, declined 24.1% and hurt performance by 31 bps. The decline was due to concerns that a possible economic slowdown would cut into visitation and spending levels at its properties. Thus far, management has not seen any change to visitation or spending. Boyd has a robust balance sheet and is using its excess cash flow to invest in its properties and buy back its shares. Boyd’s underleveraged financials at just 2.5 times lease-adjusted net leverage give it the ability to continue to invest in its assets, pursue accretive acquisitions, and return capital to shareholders.
From Ron Baron (Trades, Portfolio)'s Baron Focused Growth Fund second-quarter 2022 letter.
