Zach Schreiber’s PointState Capital disclosed that it has quadrupled its exposure to L-3 Communications Holdings, Inc. (NYSE:LLL). In its latest Schedule 13G form, filed yesterday, the fund acknowledged holding 5.17 million shares of Common Stock, which account for 6.0% of the company’s outstanding stock. This implies that the fund acquired about 3.9 million shares since the end of the second quarter, when it held just 1.26 million shares, worth more than $150 million.
PointState Capital is a global macro-focused hedge fund manager that was founded in November of 2010 by CEO Sean Cullinan, Zach Schreiber, and five former Duquesne Capital portfolio managers. This is basically the new Duquesne Capital, excluding Stan Druckenmiller, who still invested $1 billion in the fund, which started with $5 billion in assets under management in 2010. Sean Cullinan, who was the Chairman and CEO of Point State Capital, left in 2012 and was replaced by Zach Schreiber. PointState Capital returned 12.5% in 2012 but its AUM went down to $4.5 billion by the end of that year.
L-3 Communications Holdings, Inc. (NYSE:LLL) is a $10.24 billion market cap prime contractor in aerospace systems and national security solutions. The company has been in the spotlight lately, as allegations of it having issued materially false and misleading statements regarding its financial performance and prospects arose. Levi & Korsinsky commenced a class action lawsuit in the United States District Court for the Southern District of New York on behalf of investors who purchased L-3 Communications Holdings, Inc. (NYSE:LLL)’s stock between April 25, 2013 and July 30, 2014.
The deadline for shareholders who wanted to be appointed as lead plaintiffs was set on September 30. PointState Capital’s purchase allegedly came on the day before this, on September 29.
Other major institutional investors betting on L-3 Communications Holdings, Inc. (NYSE:LLL) are David Harding’s Winton Capital Management and Jim Simons’ Renaissance Technologies. Over the second quarter of 2014, Winton Capital Management boosted its stake by 3%, to 1.4 million shares, while Renaissance Technologies more than tripled its exposure, to 380,700 shares.
Zach Schreiber seems to have a good eye for industrials. PointState Capital’s second-largest bet in this segment is placed on Delta Air Lines, Inc. (NYSE:DAL), which has returned almost 20% year-to-date, compared to the S&P 500’s 3.14% surge.
Disclosure: Javier Hasse holds no positions in any stocks or funds mentioned
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