Relational Investors Goes Activist on L-3 Communications $LLL

Ralph Whitworth’s Relational Investors boosted its stake in L-3 Communications Holdings (LLL) to 5.98%. They currently own 6,347,694 shares of the company. At the end of March, Relational Investors held 2.5M shares but they gradually increased their shares to more than $5M on June 13th. In the following 9 days after June 13th they purchased an additional 0.98% of LLL’s outstanding shares which resulted in a 5.98% stake in L-3 Communications Holdings.


Relational Investors is the largest shareholder of the company. There are also other hedge fund managers in L-3 Communications Holdings. Cliff Asness’s AQR Capital Management had $14.6 M in LLL at the end of March. Phill Gross and Robert Atchinson’s Adage Capital Management, Ray Dalio’s Bridgewater Associates, John Murphy’s Alydar Capital, and Tom Facciola’s Tigershark Partners are also among the hedge funds with positions in LLL.

Relational Investors was founded by Ralph V. Whitworth in 1996. Whitworth had $6.4 Billion in assets under management. Relational Investors is an activist fund that buys large stakes in underperforming stocks and forces management to take actions that will enhance profitability and improve shareholder value.  Ralph Whitworth has a juris doctor degree from Georgetown University Law Center.

Google Finance states that “L-3 Communications Holdings, Inc. (L-3) is a prime contractor in Command, Control, Communications, Intelligence, Surveillance and Reconnaissance (C3ISR) systems, aircraft modernization and maintenance, and government services. L-3 is also a provider of a range of electronic systems used on military and commercial platforms. The Company’s customers include the United States Department of Defense (DoD) and its prime contractors, United States Government intelligence agencies, the United States Department of Homeland Security (DHS), United States Department of State (DoS), United States Department of Justice (DoJ), allied foreign governments, domestic and foreign commercial customers, and select other United States federal, state and local government agencies. The Company operates in four segments: C3ISR, Government Services, Aircraft Modernization and Maintenance (AM&M) and Electronic Systems.”