Mark D. Lerner’s Chesapeake Partners Management filed on December 6th that firm has boosted its passive stake in Clearwire Corp/DE (CLWR) to 5.4%. According to the filing, Chesapeake Partners Management passed the 5% ownership threshold on October 13th, and continued purchasing the shares until December 2nd. Now Chesapeake Partners Management beneficially owns 13.84 million shares in CLWR. Chesapeake Partners Management did not make large adjustment to its CLWR before October. The firm had 3.93 million shares in CLWR at the end of June, and 4.45 million shares by the end of September. On November 18th, CLWR dropped 21% as the company was thinking about skipping a $237M interest payment due December. So Chesapeake Partners Management must have seen the stock’s sudden decline as a buying signal. CLWR has lost 56% so far in 2011, and is priced at $2.28.
There are some other hedge funds that were also invested in CLWR in the third quarter. Larry Robbins’ Glenview Capital increased its position by 30% and reported 15.23 million in its third quarter 13F. Anand Parekh’s Alyeska Investment Group increased his position by 22% and had 10 million shares at the end of September. John Brennan’s Sirios Capital Management decreased its position by 48% to 4.38 million shares in the stock.
According to Businessweek, Chesapeake Partners Management Co., Inc. is a privately owned hedge fund. The firm invests in the public equity and alternative investment markets of the United States. Chesapeake Partners Management Co., Inc. was founded in 1991 and is based in Baltimore, Maryland.
Per Google Finance, Clearwire Corporation “is a provider of fourth generation (4G) wireless broadband services. Clearwire builds and operates next generation mobile broadband networks that provide high-speed mobile Internet and residential access services, as well as residential voice services. Its 4G mobile broadband network provides a connection anywhere within its coverage area. In its 4G mobile broadband markets, Clearwire offer its services through retail channels and through its wholesale partners. As of December 31, 2010, the Company conducted its operations through its domestic and international subsidiaries. Clearwire Communications has one primary domestic operating subsidiary Clear Wireless LLC, which operates all of its 4G mobile markets. Internationally, its operations are conducted through Clearwire International, LLC, an indirect, wholly owned subsidiary of Clearwire Communications, which also indirectly holds investments in Europe and Mexico.”