Luxor Capital Reports New Passive Stake in CONN’s Inc (CONN)

According to a new filing with the Securities and Exchange Commission, Luxor Capital Group, LP, led by Christian Leone, has initiated a position in CONN’S, Inc. (NASDAQ:CONN), revealing ownership of around 2.0 million shares. In this way, the stake held by Luxor Capital amasses 5.6% of the company’s outstanding common stock.

Christian Leone

CONN’S, Inc. (NASDAQ:CONN) is a specialty retailer in consumer electronics, operating about 80 retail locations across Texas, Louisiana, Oklahoma, New Mexico, and Arizona. For the fourth quarter ended January 2014, the company announced its preliminary financial results and recorded an increase of 44.8% year on in revenues to $301.6 million. It expects to generate EPS between $0.76 and $0.81 for the same period, lower than consensus estimates of $0.93 per share. For the fiscal year ending January 31, 2015, the company expects earnings per share of $3.40 to $3.70, estimated increase of 35.8% year on.

The company sports a trailing P/E of around 15.23 and has a beta of 1.32. Moreover, Zacks has a hold recommendation on the $1.3 billion (in terms of market cap) Texas-based retailer.

One of the largest stockholders of CONN’s Inc is Mark Broach’s Manatuck Hill Partners, which held 668,000 shares at the end of the fourth quarter of 2013. It is followed by Alexander Mitchell’s Scopus Asset Management, with approximately 590,000 shares, and John Murphy’s Alydar Capital, which held approximately 305,800 shares.

Luxor Capital Group was founded in 2002 by Christian Leone. The fund has a relatively balanced structure, with holdings in equity and fixed income investments throughout the world. Aside from using a value-based approach when choosing its stocks, Luxor Capital also has a penchant for distressed companies.

Luxor Capital has been active in the recent couple of months, reporting significant raises in its holdings. This month, the fund upped its stake in BJ’s Restaurants, Inc. (NASDAQ:BJRI), to 2.75 million shares. In February, the fund disclosed holding 5.4% in Nexstar Broadcasting Group, Inc. (NASDAQ:NXST), and it initiated a position in CBL & Associates Properties, Inc. (NYSE:CBL), owning 8.8 million shares.

According to the fund’s latest 13F, Luxor Capital is the largest shareholder in Ing Us Inc (NYSE:VOYA), with a stake valued in excess of $295.2 million. It is followed by Madison Square Garden Co (NASDAQ:MSG), of which it holds around 5.0 million shares valued at $287.6 million, and Cole Real Estate Investment (NYSE:COLE), in which it owns 18.9 million shares worth more than $265.7 million.

Disclosure: none

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