Jerome Simon, Lonestar Are Betting On These Mid- and Large Cap Stocks

Jerome L. Simon founded Lonestar Capital Management in the summer of 1995. The San Francisco-based activist hedge fund specializes in special situations, distressed investing, energy, and the exploitation of leveraged capital structures and mispriced securities. Prior to founding Lonestar, Simon worked for Drexel Burnham Lambert in Los Angeles in the restructuring advisory group and for the distressed securities desk in the summer of 1989. Simon then worked for two Mill Valley, Calif.-based hedge funds, Paul D. Sonz Partners LP in 1991 and 1992, and Avdan Partners LP in 1993 and 1994. Simon worked as a consultant for Leucadia National Corp., a diversified holding company involved in banking, real estate and other areas, from November 1994 until March 1995. Earlier, from 1986 to 1988, Simon was president of a single-asset hotel corporation that became a debtor-in-possession in a Chapter 11 bankruptcy proceeding. He also worked as an independent petroleum landman in 1984 and 1985. Simon received an MBA from Stanford University in 1990 and a bachelor’s degree in economics from Claremont McKenna College in 1982.

Rite Aid Corporation (NYSE:RAD)

Lonestar’s largest equity position as of the end of 2013 was Rite Aid Corp (NYSE:RAD), which comprised 6.5% of the portfolio. Although Simon reduced his stake by approximately 8 million shares during the fourth quarter, he still owns 1.1% of the drug retailer’s outstanding shares. His partial sale of his stake could be function of profit-taking following the stock’s strong performance but his remaining position implies a continued bullish view on the company’s turnaround plan. Other large shareholders include Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital, David Shaw of D E Shaw and Ken Griffin of Citadel Investment Group.

Its second largest holding was American Airlines Group (NYSE:AAL), a newly initiated position that amounted to 1.6 million shares, or roughly 0.6% of the carrier’s shares outstanding. Many hedge funds participated in the company’s emergence from bankruptcy, as a consolidated industry should benefit the major players, of which AAL is the largest. Other large shareholders include William B. Gray of Orbis Investment Management, John Paulson of Paulson & Co. and James Dinan of York Capital Management.

Third on the list is CF Industries Holdings Inc. (NYSE:CF), a stock that Simon initially purchased in the third quarter of 2013. Although he reduced his stake by 80,000 shares during the fourth quarter, he still retains a 0.3% stake in the manufacturer of nitrogen and phosphate fertilizer products, whose stock price has benefitted from an increase in capital return to shareholders as well as the possibility of converting to a master limited partnership structure. Other large shareholders include David Shaw of D E Shaw, Crispin Odey of Odey Asset Management and Sean Cullinan of Point State Capital.

Lonestar’s fourth largest holding was Cumulus Media (NASDAQ:CMLS), in which it owned a 2.5% stake. The owner and operator of commercial radio operations is up 95% over the past 12 months. Other investors in the stock include Joshua Friedman and Mitchell Julis of Canyon Capital Advisors, Wallace Weitz of Wallace R. Weitz & Co. and Dennis Leibowitz of Act II Capital.

Finally, its fifth largest position is in General Motors Co. (NYSE:GM), a stock that Simon continued to purchase (he bought 150,000 shares in the fourth quarter after buying 75,000 shares in the third quarter). Other large shareholders include Harris Associates, Warren Buffet of Berkshire Hathaway, David Einhorn of Greenlight Capital and Brian Taylor of Pine River Capital Management.

Disclosures: none.

Recommended reading:

Sandell Asset Management Increases Holding of Bob Evans Farms Inc (BOBE) Shares

Steven Cohen’s SAC Capital Ups Passive Stake in Gogo Inc (GOGO)

Carl Icahn’s Interview on eBay Inc (EBAY)

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!