Hedge Funds Are Dumping Yahoo! Inc. (YHOO)

We should have also mentioned that Yahoo! Inc. (NASDAQ:YHOO) also announced plans to undertake a reverse of its previously-announced spin-off transaction, which simply means that the company was planning to spin-off its struggling internet business into a new company. However, Starboard Value stated that the “reverse spin-off” plan would simply mean that Yahoo’s shareholders will have to wait yet another year while “the existing leadership continues to destroy value”. In February 2015, the struggling digital media company announced that its Board of Directors was exploring strategic alternatives alongside its intentions of a reverse spin-off, which means that the activist investor might finally get what he previously sought to achieve.

Hedge fund activity in Yahoo! Inc. (NASDAQ:YHOO)

Heading into 2016, a total of 84 of the hedge funds tracked by Insider Monkey were bullish on this stock, a decline of 6% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Luxor Capital Group, managed by Christian Leone, holds the number one position in Yahoo! Inc. (NASDAQ:YHOO). Luxor Capital Group has a $381.2 million position in the stock, comprising 12% of its 13F portfolio. The second largest stake is held by Mason Capital Management, led by Kenneth Mario Garschina, holding a $356.3 million position; the fund has 11.8% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors with similar optimism encompass Ken Griffin’s Citadel Investment Group, Jeffrey Tannenbaum’s Fir Tree and Jeffrey Altman’s Owl Creek Asset Management.