Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Should You Follow Luxor Capital Group And Cut Exposure To CoStar Group (CSGP) And Three Other Stocks?

Christian Leone started Luxor Capital Group in 2002 and has grown it into a financial powerhouse with more than $8 billion in assets under management as of August 2016. Leone and his team employ a value oriented investment approach, focusing on equity and fixed income markets across the globe. According to its latest 13F report, Luxor Capital managed an equity portfolio valued at $3.55 billion at the end of September. The fund has great exposure to the financial sector, with financial stocks accounting for 68% of its equity portfolio’s value.

After a shaky start to 2016, Luxor Capital managed to turn things around, having ended the third quarter on a high note. According to Insider Monkey’s performance measurements, the fund’s equity picks registered a positive return of 14.89% in the third quarter, placing it among the best performing funds in our database. It is important to note that take into account only investments in public equities that have a market cap greater than or equal to $1 billion. In this article, we’ll take a look at some of the fund’s largest bets and how Christian Leone played them during the quarter.

Christian Leone

First up is BJ’s Restaurants, Inc. (NASDAQ:BJRI), a stock that Luxor Capital has been holding since the beginning of 2014. At the end of the most recent quarter, the fund’s stake in the company was reduced by 3% to 2.41 million shares valued at $85.8 million according to its latest 13F filing. The stock plunged by roughly 18.9% during the third quarter.

Now, we’re going to take a look at the latest hedge fund action regarding BJ’s Restaurants, Inc. (NASDAQ:BJRI). At the end of the second quarter, a total of 20 of the hedge funds tracked by Insider Monkey were long this stock, a drop of 5% from the previous quarter. More specifically, Luxor Capital Group was the largest shareholder of BJ’s Restaurants, Inc. (NASDAQ:BJRI) at the end of June, followed by Jim Simons’ Renaissance Technologies, which amassed a stake valued at $23.5 million. Balyasny Asset Management, Millennium Management, and Marshall Wace LLP also held valuable positions in the company.

Follow Bjs Restaurants Inc (NASDAQ:BJRI)
Trade (NASDAQ:BJRI) Now!

Next up is DHX Media Ltd (USA) (NASDAQ:DHXM), a producer and distributor of kids and family television and film productions. Luxor Capital cut its position in the stock by 15% during the third quarter to some 10.2 million shares worth approximately $53.5 million. The stock returned a meager 0.6% during the third quarter.

During the second quarter, the number of funds betting on this stock remained unchanged from the first quarter, with 7 of the funds followed by Insider Monkey having reported holding a long position as of the end of June. According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Luxor Capital Group held the biggest position in DHX Media Ltd (USA) (NASDAQ:DHXM) at the end of the second quarter. Sitting at the No. 2 spot was Debra Fine of Fine Capital Partners, with a $27.4 million position; the fund had 3.1% of its 13F portfolio invested in the stock. Remaining peers that were bullish include Jonathan Lennon’s Pleasant Lake Partners, Eric Sprott’s Sprott Asset Management, and Matthew Drapkin and Steven R. Becker’s Becker Drapkin Management.

We’ll check out two more of the fund’s stock picks on the next page.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.