Christian Leone’s Luxor Capital Group has been pretty active in Altisource Asset Management Corp (NYSEMKT:AAMC) lately. According to a couple of Form 4 filings, the fund recently acquired 18,325 shares of Common Stock, for an average weighted price of $548.69 per share. Following these purchases, Luxor holds 530,805 shares of the company, which represent more than 17.5% of its shares outstanding. The position includes 120,000 shares held as preferred stock.
Luxor Capital Group is a New York-based hedge fund sponsor founded and managed by Christian Leone since 2002. Luxor uses a value-based approach when choosing its stocks, but also likes distressed companies. The fund last disclosed –by the end of the second quarter of 2014- an equity portfolio worth more than $5 billion, focused on finance (46.9%) and consumer discretionary (31.6%) stocks.
Altisource Asset Management Corp (NYSEMKT:AAMC) is a $1.17 billion market cap asset management company that provides portfolio management and corporate governance services. Luxor has been buying this stock since late-August; in mid-October, the fund surpassed the 15% ownership threshold. It then continued to buy the stock, as the price fell. Most recently, it disclosed the purchase of 18,325 shares through several transactions that took place between October 24 and October 29, inclusive.
Other major institutional investors betting on Altisource Asset Management Corp (NYSEMKT:AAMC) are Brian Jackelow’s SAB Capital Management and Ben Gambill’s Tiger Eye Capital, which last disclosed (by the end of the second quarter of 2014) ownership of 219,298 shares and 92,565 shares, respectively.
Christian Leone’s Luxor Capital Group has been also active in Eclipse Resources Corp (NYSE:ECR) and CONN’S, Inc. (NASDAQ:CONN). The fund started a position, with 8.37 million shares, in Eclipse Resources Corp (NYSE:ECR), which represent 5.2% of the company’s outstanding Common Stock, just a few days ago. A few days earlier, it had disclosed an acquisition of 1.95 million shares of CONN’S, Inc. (NASDAQ:CONN). Its activist stake now comprises 20.9% of the company’s Common Stock, or 7.58 million shares.
But, as Altisource Asset Management Corp (NYSEMKT:AAMC)’s stock continues to plummet (it is already down more than 42% year-to-date), why should you follow Mr. Leone into this company? Well, Leone certainly has a sharp picking-eye. It top pick for the second quarter, The Madison Square Garden Co (NASDAQ:MSG), has returned about 30.7% year-to-date, compared to the S&P 500 Index’s 9.17% surge.
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned
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