A Closer Look Inside Solus
Solus Alternative Asset Management filed its 13F with the Securities and Exchange Commission last month, publicly disclosing some of the long positions it had in its portfolio at the end of September. These filings provide investors with the most comprehensive look at what hedge funds and other notable investors own at a certain time, even if we must wait several weeks before seeing their positions. We track a number of funds, and so were able to review what Solus, managed by Christopher Pucillo, disclosed in its filing. Two of its positions had considerably larger market values than the rest of the stocks in its portfolio (you can research Solus' filings here).
The fund's largest 13F position by market value is 1.6 million shares of Loral Space & Communications (LORL), a $2.4 billion market cap company that designs satellites and space systems and, obviously, has a substantial communications business. The stock trades at 20x trailing earnings (based on historical results, Loral's earnings seem to be volatile). Revenue in the third quarter of 2012 was down 17% from the same period in 2011. Loral Space & Communications is also one of Mark Rachesky's favorite stocks; Rachesky, an activist investor, used to work for Carl Icahn but founded MHR Fund Management in 1996. At the end of June, MHR owned 8.1 million shares of Loral Space & Communications, making the company its second-largest holding by market value (see more of MHR's favorite stocks). Loral has recently announced plans to return $27 per share in cash to its shareholders following its sale of a business unit....300 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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