Luxor Capital Adds To Conn's Position ~ market folly

Tuesday, October 7, 2014

Luxor Capital Adds To Conn's Position

Hedge fund firm Luxor Capital filed a 13D with the SEC regarding their position in Conn's (CONN).  Per the filing, Luxor now owns 20.9% of the company with over 7.58 million shares. 

This means they've boosted their position size by over 4.64 million shares since the end of the second quarter.

Their 13D contains the standard boilerplate that they don't have any plans currently but may engage with management.  The filing was made due to activity on September 29th.

Conn's recently announced it is exploring strategic alternatives.  They're entertaining ideas such as separating its retail and credit businesses, slowing store openings and returning capital to investors, or selling the company.

David Einhorn's Greenlight Capital was also a top shareholder of the company as of the end of Q2.

Per Google Finance, Conn's is " is a specialty retailer of durable consumer products, and it also provides consumer credit to support its customers’ purchases of the products that it offer. The Company derives revenue primarily from two sources: retail sales and delivery of consumer electronics, home appliances, furniture and mattresses, lawn and garden equipment and repair service agreements, and its in-house consumer credit program, including sales of related credit insurance products. Through its in-house consumer credit programs, it provides financing. In addition, it offers third-party payment options through GE Capital, for customers with high credit scores, and RAC Acceptance, a rent-to-own payment plan for customers that do not qualify for the other options it offer."

blog comments powered by Disqus