Wexford Capital Discloses 5.86% Stake in Hemisphere Media Group, Inc.

In the company’s last earnings report, for the third quarter of fiscal 2014, ending September 30, Hemisphere Media Group, Inc. (NASDAQ:HMTV)  detailed rising subscriber bases for all of their entertainment platforms, and revenue that continued to rise alongside them. Revenue for the quarter was up by 21% to $28.8 million from $23.7 million during the same year ago period. Revenue for the first three quarters of fiscal 2014 was likewise strong at $78.8 million, a 31% increase over the $60.1 million earned during the first three quarters of fiscal 2013.

While operating expenses also rose, they did not outpace the growth in revenue, leading to new incomes of $0.7 million during the third quarter of fiscal 2014, and $6.2 million for the first three quarters of fiscal 2014. That was compared to losses of $4 million and $6.9 million during the same periods in 2013. Hemisphere also reported that their station WAPA enjoyed record performance, with full-day ratings up 10%, and prime-time ratings up 12% year-over-year. They maintained their full-year earnings guidance, with adjusted EBITDA expected to be in the range of $49 million to $51 million.

There has been relatively little activity on Hemisphere Media Group, Inc. (NASDAQ:HMTV) among the funds we track on Insider Monkey since its IPO in early 2013. Christian Leone’s Luxor Capital Group has been the largest institutional investor from the beginning, with 3.24 million shares by June 30, 2013. They increased that to 5.13 million shares by early 2014, giving them a large 42.30% stake in the company. They have maintained that position ever since.

Richard Rubin’s Hawkeye Capital was a strong early investor in Hemisphere as well, owning over 2 million shares as of June 30, 2013, making them the second largest institutional investor at the time. They maintained those shares for another quarter before selling nearly all of them in the fourth quarter of 2013, and the remaining handful in early 2014.

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