Blue Mountain Capital Management Cuts Stake in Lexmark International Inc (LXK) Below 5%

Only a couple of days after selling a chunk of their stake in Lexmark International Inc (NYSE:LXK), Andrew Feldstein and Stephen Siderow‘s Blue Mountain Capital Management has disclosed further trimming the position in the company. According to a newly amended filing, Blue Mountain has reduced the holding in Lexmark down to 2.99 million class A shares, from 3.78 million held earlier. The position, now amasses 4.8% of the class A common stock of the company.

Blue Mountain has been trimming its investment in Lexmark International for quite some time. It reduced its stake to 3.78 million shares a couple of weeks ago, after disposing some more from the holding at the beginning of this week.

Lexmark International Inc. develops and manufactures printing and imaging devices besides providing business process and content management solutions. The company acquired PACSGEAR in October, 2013. The company announced recently that it has changed its pension accounting to the mark-to-market methodology in order to improve transparency of its operating performance. The effect will be reflected in its fourth quarter and full fiscal results due to be announced on January 28, 2014.

Apart from Blue Mountain, other hedge funds invested in the company include David Cohen And Harold Levy’s Iridian Asset Management with 2.16 million shares worth $71.11 million and Cliff Asness’ Aqr Capital Management with 679,000 shares worth $22.41 million at the end of the third quarter of 2013.

Blue Mountain Capital Management follows a relative value strategy and focuses on credit and equity derivates market to achieve returns for its investors. The hedge fund had $2.59 billion in its equity portfolio at the end of the third quarter of 2013. The fund does not focus on any specific sectors. Apart from Lexmark International, the fund had invested 2.74 million shares worth $93.42 million in Valero Energy Corp (NYSE:VLO) apart from 1.63 million shares worth $79.27 million in American International Group Inc (NYSE:AIG) at the end of the third quarter of 2013.

Disclosure: none

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