Altisource Asset Management Corp (AAMC): Christian Leone’s Luxor Capital Strengthens Its Activist Stake

As a new filing with the U.S. Securities and Exchange Commission showed, Christian Leone‘s Luxor Capital Group has inched up its position in Altisource Asset Management Corp (NYSEMKT:AAMC). The fund revealed holding a total of 400,215 shares, the stake being increased by around 27,400 shares acquired in several transactions. The activist position also includes 120,000 shares that can be issued upon the conversion of preferred stock, the filing added. Following the increase, Luxor Capital owns 12.5% of Altisource Asset Management Corp (NYSEMKT:AAMC)’s common stock.

As Luxor also said in its filing, the total cost of investment amounts to over $220 million. Even though, so far this year, Altisource Asset Management Corp (NYSEMKT:AAMC)’s stock has been declining, it has more than doubled over the past year. We should also mention that Luxor initiated a stake in the company during the third quarter of 2013, first disclosing ownership of around 62,000 shares and over the following quarters keep raising its exposure to the company.

Altisource Asset Management Corp (NYSEMKT:AAMC) is a $1.5 billion asset management company, which also provides corporate governance services to Residential, under the terms of the Residential asset management agreement. For the first six months of the year, Altisource Asset Management reported a net income of $20.1 million, equal to $7.00 per share, which is a significant improvement from a net loss of $2.3 million the company reported for the same period of 2013.

Another investor that holds a significant chunk of Altisource Asset Management Corp (NYSEMKT:AAMC) shares is Brian Jackelow‘s SAB Capital Management, which last declared holding some 219,300 shares, according to its 13F filing. Among others, Israel Englander‘s Millennium Management has reported a new stake in the company in its latest 13F filing, although it owns a small position that contains around 1,900 shares.

Disclosure: none