The team at Evermore Global Value Fund recently published their commentary for Q1 2018. You can read the full letter here. Evermore Global Advisors, LLC was established in 2009 by David Marcus and Eric LeGoff. The founders previously worked for / with Michael F. Price at Mutual Series.

The letter includes some commentary on Universal Entertainment, which I have reproduced below:

“Universal Entertainment (6425 JP) is a leading developer and manufacturer of pachinko and pachislot gaming machines in Japan. It is also the owner and operator of Okada Manila, one of the largest casinos in the Philippines. Universal was the top contributor to Fund performance during the quarter (+17.5%). A notable development during Q1 was the long awaited $2.63 billion cash settlement related to the litigation against Wynn Resorts. Universal shares started to react positively ahead of the scheduled April trial date on the news of Steve Wynn’s departure from Wynn Resorts, and we also believed that Wynn Resort’s new CEO would likely be favorably disposed to settle legacy issues. While one of our numerous catalysts has been realized, we believe there is compelling upside potential at current levels. The proceeds from the settlement will be used to repay the expensive debt obligations which will move the company back into a net cash position. Further, we believe Okada Manila will continue to gain market share (already ahead of targeted trajectory) and will ultimately be publicly listed which will help to crystallize the appropriate value for this prized asset that is embedded within Universal.”