• Big Ivy League endowment has big bet on big betting stock
• It appears to be a new position
• Endowment manager owns at least one other gaming name

Harvard Management Company, the manager of the Ivy League university’s endowment, owns shares of FanDuel parent Flutter Entertainment (NYSE: FLUT) and the betting stock is among the money manager’s largest equity positions.

Part of Harvard’s campus. The school’s endowment invested in Flutter Entertainment. (Image: Stephanie Mitchell/Harvard University)

In a new Form 13F filing with the Securities and Exchange Commission (SEC), Harvard Management showed a stake of 29.33 million shares in Flutter as of the end of the third quarter. That appears to be a new position for the endowment, which controlled $56.9 billion in assets at the end of the second quarter. Shares of the FanDuel are Harvard Management’s 13^th-largest long equity position, according to Bloomberg data.

Shares of the FanDuel parent, which will soon enter the prediction markets fray, are off 32.49% over the past 90 days and reside nearly 37% below the 52-week high, easily exceeding the definition of a bear market, which is defined by a 20% drop.

Flutter Controversial Holding for College Endowment

Despite the declines by Flutter and other sportsbook equities, analysts say those sell-offs are overdone and the prediction market concerns are blown out of proportion due in large part to the fact that yes/no exchanges have a lot of catching up to do bring their sports offering to par with FanDuel and comparable operators.

We argue any sell-off related to Predictions threat is overdone,” said Macquarie analyst Chad Beynon in a recent note. “First, there have been no signs of any impact to the business in US states that have legalized sports betting in 3Q. Second, Flutter will be launching FanDuel Predicts in December through its partnership with CME Group, giving instant access to the untapped population in unregulated states. Management can lean on its extensive experience operating the Betfair Exchange within the Flutter Group.”

Still, a college endowment owning a significant stake in a company such as Flutter may be viewed as controversial in some circles. Studies suggest young men, including college students, are among the most vulnerable to gambling addiction.

A 2023 NCAA-commissioned study confirmed 17% of college students, most of whom were men, said they lost at least $100 in a day betting on sports while another 6% said they lost anywhere from $500 to $1,000 in a day.

Flutter not Harvard’s Only Gaming Holding

Flutter isn’t the only gaming stock held by Harvard Management Company. Slot machine manufacturer Light & Wonder ranks among the endowment’s top 10 equity positions, according to the 13F. That’s not a new holding for Harvard.

This week, Light & Wonder abandoned its presence on the Nasdaq in favor of a sole listing in Sydney.

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