Christian Leone‘s Luxor Capital Group keeps raising its exposure to Altisource Asset Management Corp (NYSEMKT:AAMC) as recent filings with the Securities and Exchange Commission show. Luxor has purchased around 30,800 shares over the last couple of days, at an average price of around $589 per unit. The stake held by Luxor currently amasses 512,480 shares of the company, which represent 17.5% of the company. The position also includes 120,000 shares held as preferred stock.
Meanwhile, the stock of Altisource Asset Management Corp (NYSEMKT:AAMC) dropped by over 40% year-to-date. Luxor Capital Group has been buying shares for a while, intensifying its buying spree over the last couple of months. Back in August, the fund purchased some 27,400 shares, followed by an acquisition of around 12,300 shares at the beginning of September. Later on, Luxor bought 100 shares and 2,500 shares. Finally, at the beginning of October, Mr. Leone’s fund raised its stake by adding over 22,800 shares, crossing the 15% stake threshold.
Moreover, since Luxor’s stake is activist by nature and amasses a significant portion of the company’s common stock, we might see Mr. Leone engaging in some discussions with the company’s management and board of directors and proposing some measures amid the stock losing ground. In addition to Altisource Asset Management Corp (NYSEMKT:AAMC), Mr. Leone recently went activist on CONN’S, Inc. (NASDAQ:CONN) also after raising its stake for a while. In its latest filing regarding CONN’S, Luxor Capital disclosed raising its stake by 1.95 million shares to 7.58 million shares, which represent over 20% of the company. However, the investor has not disclosed anything significant about its future plans in the company.
Altisource Asset Management Corp (NYSEMKT:AAMC) is a company that is specialized in providing asset management and corporate governance services to residential companies. Despite the stock’s significant undeperformance, many funds still own significant positions in the company. Brian Jackelow‘s SAB Capital Management inched down its stake by 2% during the second quarter and still owns 219,300 shares, which amass over 8% of the fund’s equity portfolio. Ben Gambill‘s Tiger Eye Capital cut its stake by over 20% to 92,600 shares, the position representing 7% of the equity portfolio.
Luxor’s bullishness comes on the back of strong financial results reported by the company over the last several quarters, despite the stock decreasing. Altisource Asset Management Corp (NYSEMKT:AAMC) posted revenue of around $116 million, from just $6 million a year ago, while its net income went up to $4.6 per share from a loss of $0.6 for the same period a year ago.
With this in mind, while Altisource Asset Management Corp (NYSEMKT:AAMC) might still be quite expensive for small investors, the stock should still be kept on the radars, since Luxor keeps buying more shares on the back of the stock losing ground and becoming cheaper. At some point it might reverse its trend and go up again, which will represent in profits for investors. Moreover, since Altisource is still a mid-cap stock with a market cap of around $1.7 billion and has some 2.2 million shares in total, it might consider splitting its stock to be more attractive for investors.