Christian Leone Trims Exposure to Top Picks, Buys Apple, Sells Yahoo

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New York-based Luxor Capital Group, managed by Christian Leone, is a fund with a balance structure, which has an equity portfolio worth $3.79 billion as of June 30. The fund mostly invests in equity and fixed income investments across the world and it uses a value-based approach, but also has a knack of picking distressed companies at cheaper price. Let’s take a closer look at Luxor’s top picks at the end of June, as well as a couple of significant moves the fund made during the second quarter.

More specifically, the stocks that we are going to discuss are GrubHub Inc (NYSE:GRUB), IAC/InterActiveCorp (NASDAQ:IAC), BJ’s Restaurants, Inc. (NASDAQ:BJRI), Apple Inc. (NASDAQ:AAPL), and Yahoo! Inc. (NASDAQ:YHOO).

We believe that imitating hedge funds and other large institutional investors can be helpful in identifying stocks capable of outperforming the broader market. Through extensive research that covered portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see more details here).

Christian Leone

GrubHub Inc (NYSE:GRUB)

– Shares Owned by Luxor Capital Group (as of June 30): 4.54 million

– Value of Luxor Capital Group’s holding (as of June 30): $141.07 million

Luxor Capital Group reduced its stake in online and mobile food ordering company GrubHub Inc (NYSE:GRUB) to 4.54 million shares from 5.58 million shares during the second quarter. Last month, GrubHub Inc (NYSE:GRUB)’s Seamless platform started turnkey delivery service in Manhattan. Diners are excited as they will be able to get quality food, wide choice, lower fees, and transparency, while hotels are getting more business and higher reach which should be a win-win situation. Among the funds we track, 25 funds have long position in GrubHub Inc (NYSE:GRUB) worth $992.28 million in aggregate as of the end of June.

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IAC/InterActiveCorp (NASDAQ:IAC)

– Shares Owned by Luxor Capital Group (as of June 30): 2.02 million

– Value of Luxor Capital Group’s holding (as of June 30): $113.70 million

Luxor Capital Group’s second top pick IAC/InterActiveCorp (NASDAQ:IAC),  in which the fund reduced its holding by 1.04 million shares to 2.02 million shares worth $113.70 million. For the second quarter, IAC/InterActiveCorp (NASDAQ:IAC) reported revenue of $745.4 million, missing estimates by $2.51 million, while EPS of $0.42 per share was below analysts’ expectations of $0.34 per share. Match Group, HomeAdvisor, and Video saw revenues increase by 21%, 38%, and 16% on the year to $301.1 million, $130.2 million, and $47.3 million, respectively, while Publishing and Applications segments registered 45% and 25% drop in revenues to $85.3 million and $143.2 million, respectively. Out of the total funds tracked by our team, 35 funds were long in IAC/InterActiveCorp (NASDAQ:IAC) at the end of June, down from 36 a quarter earlier.

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