Mark Rachesky’s MHR Fund Management filed on December 2nd for its 29.97% activist stake in Leap Wireless International Inc. (LEAP). Mark Rachesky serves as the Chairman in LEAP since 2004, and his MHR Fund Management now has 23.60 million shares in the company. In 2011 MHR Fund Management made significant expansion to its LEAP position. The firm reported 15.54 million shares in the second quarter and 23.53 million shares at the end of September. LEAP has lost 25% so far in 2011. The stock is now trading at $9.36.
Eighteen hedge funds took LEAP in their portfolios in the second quarter. Beside MHR Fund Management’s largest portion, Rehan Jaffer’s H Partners Management had 3.75 million shares in the stock. Matthew Halbower’s Pentwater Capital Management cut its position by 36% and retained 2.40 million shares.
Mark Rachesky serves as the chairman in Leap Wireless International Inc., the director in Emisphere Technologies, the director in Lions Gate Entertainment Corporation, and the Independent Chairman of the Board in Loral Space & Communications, Ltd. Per Bloomberg Businessweek, MHR Fund Management LLC is “a privately owned investment manager. The firm primarily provides its services to pooled investment vehicles, typically hedge funds. It invests in the public equity and fixed income markets of the United States. The firm primarily invests in distressed securities of mid-cap companies. It employs a fundamental analysis to make its investments. The firm also makes private equity investments in distressed companies. MHR Fund Management was founded in 1996 and is based in New York, New York.”
Per Google Finance, Leap Wireless International, Inc. “is a wireless communications carrier that offers digital wireless services in the United States under the Cricket brand. Leap’s Cricket service offerings provide customers with unlimited wireless services for a flat rate without requiring a fixed-term contract or a credit check. Cricket service is offered by Cricket, a wholly owned subsidiary of Leap, and is also offered by LCW Wireless Operations, LLC (LCW Operations), Denali Spectrum Operations, LLC (Denali Operations), and STX Wireless Operations, LLC (STX Operations). It controls STX Operations through a 75.75% controlling interest in its parent company, STX Wireless, LLC (STX Wireless). On March 30, 2010, it acquired an additional 23.9% interest in LCW Wireless from CSM Wireless, LLC (CSM). On August 25, 2010, it acquired the remaining 5.4% of the interests in LCW Wireless.”