RCS Capital Corp (RCAP): Luxor Capital Reports Holding More Shares; Keeps Stake at 10%

Christian Leone‘s Luxor Capital Group has raised the number of shares of RCS Capital Corp (NYSE:RCAP) it holds, although its stake remained unchanged at 9.9% of the company’s class A stock. As a new filing with the Securities and Exchange Commission showed, Luxor owns around 36.59 million class A shares of the company, which includes also 22.78 million shares and 5.92 million shares that can be issued upon the conversion of Convertible Preferred Stock and Convertible Notes, as welll as 2.82 million shares that can be issued upon the exercise of Put/Call agreement. In its latest 13F filing, Luxor reported ownership of around 2.48 million class A shares of RCS Capital Corp. However, in an earlier filing, the fund disclosed holding 24.35 million shares, including stock held under Convertible Preffered Stock and Convertible Notes and shares held under Put/Call agreement.

The stock of the $732 million holding company declined by almost 40% year-to-date. RCS Capital Corp (NYSE:RCAP) has been struggling recently after its separately-listed Real Estate Investment Trust American Realty Capital Properties Inc (NASDAQ:ARCP) disclosed that it has identified an accounting mistake that was covered by two of its top executives. The stock of American Realty Capital Properties also slumped on the back of the news. The mistake consisted of an overstatement of a measure of income for the first quarter and after it was unveiled, the Chief Financial Officer and Chief Accounting Officer have been asked to resign.

Another shareholder of RCS Capital Corp (NYSE:RCAP) is Steven Cohen‘s Point72 Asset Management, which last reported holding 3.38 million shares, representing 5.1% of the company’s stock. Another investor is Brian Jackelow‘s SAB Capital Management, which owns 3.06 million shares as of the end of September.

Luxor Capital has a taste for distressed companies. Recently, the fund has disclosed a new stake with 8.37 million shares of Eclipse Resources Corp (NYSE:ECR), a company whose stock dropped by almost 50% since the beginning of the year. In addition, Christian Leone has been bullish on Altisource Asset Management Corp (NYSEMKT:AAMC), another company whose share price has been falling.

Disclosure: none