In 1996, Mark Rachesky founded MHR Fund Management, which manages in excess of $5 billion and takes a highly differentiated, control-focused, private equity approach to investing in distressed and undervalued middle-market companies utilizing its proprietary approach to sourcing. Previously, Rachesky worked at Carl Icahn‘s hedge fund and he is a well-known activist investor.
In its latest 13F, MHR Fund Management has reported its holdings as held at the end of the fourth quarter of 2013. The value of the fund’s equity portfolio amounted to $3.51 billion, down from $3.70 billion in the third quarter. We have picked MHR Fund Management’s top five holdings in terms of value that the fund held in its equity portfolio at the end of last year.
The first position is held by Lions Gate Entertainment Corp. (USA) (NYSE:LGF), in which the fund disclosed holding nearly 52 million shares, with a reported value of more than $1.60 billion. The stake remained unchanged from over the quarter. Lions Gate Entertainment Corp. (USA) (NYSE:LGF) is a global entertainment company with a strong and diversified presence in motion picture production and distribution, television programming and syndication, home entertainment, family entertainment, digital distribution, new channel platforms and international distribution and sales.
On second spot is Loral Space & Communications Ltd. (NASDAQ:LORL). The fund owns 8.13 million shares, worth nearly $660 million. Loral Space & Communications Ltd. (NASDAQ:LORL) is a satellite communications company.
In Navistar International Corp (NYSE:NAV), MHR Fund Management disclosed ownership of nearly 13 million shares, with a reported value of $500 million. The fourth-largest holding is Leap Wireless International, Inc. (NASDAQ:LEAP), in which the fund disclosed owning nearly 24 million shares, worth approximately $410 million. The quantity of shares remained changed from the third quarter.
MHR Fund Management owns around 18 million shares of Key Energy Services, Inc. (NYSE:KEG). The value of the stake is close to $140 million.
During the fourth quarter of 2013, MHR Fund Management initiated a stake in Titan International Inc (NYSE:TWI). The fund reported holding a total of 2.60 million shares, worth around $47 million. In addition, the fund reported selling out its stake in ENSCO PLC (NYSE:ESV), previously holding around 3.47 million shares.