Paulson & Co Adds to Dex Media Stake, Kyle Bass Discloses His DXM Position

John Paulson's hedge fund firm Paulson & Co filed an amended 13D and a Form 4 with the SEC regarding shares of Dex Media (DXM).  Per the filings, Paulson has disclosed a 13% ownership stake in DXM with 2.23 million shares.

This marks an increase of around 19% in their position size, up from the 1.87 million shares they owned at the end of April. The new disclosure was required due to portfolio activity on May 14th.

Dex Media is the combination of the former Dex One (former ticker DEXO) and Super Media (former ticker SPMD) entities.  They recently merged and reorganized.  Paulson previously owned shares of both and as such received shares of the merged company.


Kyle Bass' Hayman Capital Discloses DXM Stake

Hedge fund Hayman Capital also owns a large stake in DXM and founder Kyle Bass presented the case on Dex Media at the recent Ira Sohn Conference.

Today we get a sense as to how big Bass' equity position is in the newly combined company. Per portfolio activity on April 30th, Bass' Hayman Capital filed a 13G with the SEC on Dex Media and revealed a 9.7% ownership stake in DXM with 1,664,636 shares.

Bass also previously held shares in both Dex One and SuperMedia and as such received shares in the newly combined entity, Dex Media.

Per Yahoo Finance, Dex Media "engages in the publication and marketing of directories, which include Yellow Pages and White Pages in the United States. The company also offers Internet-based telephone directory and database marketing services." 

Paulson & Co Discloses Position in New Dex Media Entity

John Paulson's hedge fund Paulson & Co has filed a 13D with the SEC regarding the new entity of Dex Media (DXM).  Per the filing, Paulson & Co has reported a 10.9% ownership stake with 1,878,927 shares.

Dex Media came to fruition via a merger of Dex One and SuperMedia, both positions Paulson was previously long.  As a result, they received a stake in the new entity after reorganization.

Last week, we highlighted how Hayman Capital's Kyle Bass presented the bull case on Dex Media at this year's Ira Sohn Conference.

Per Yahoo Finance, Dex Media "engages in the publication and marketing of directories, which include Yellow Pages and White Pages in the United States. The company also offers Internet-based telephone directory and database marketing services."

Notes From Ira Sohn Conference 2013: Einhorn, Druckenmiller, Eisman & More

Today we present notes from the 2013 Ira Sohn Conference in New York.  The 18th annual event featured top hedge fund managers presenting investment ideas and the proceeds from the event benefit pediatric cancer research and treatment via the Sohn Conference Foundation.  Summaries of each speaker's talk are linked below.


Notes From Ira Sohn Conference 2013

Stanley Druckenmiller (Druckenmiller Family Office) on commodities, short Australian Dollar

David Einhorn (Greenlight Capital) on Oil States International (OIS)

Steve Eisman (Emrys Partners) on housing plays: OCN, LEN, PHM, FBHS, FOR, CLNY, AMWD

Paul Singer (Elliott Management): a financial overview & history of markets

Jim Chanos (Kynikos Associates): short disk drive makers Seagate & Western Digital

Kyle Bass (Hayman Capital) on Dex Media (DXM) and Japan

Bill Ackman (Pershing Square): long Procter & Gamble (PG)

Jeffrey Gundlach (DoubleLine) on quantitative easing, short French bonds, short Chipotle

Jonathon Jacobson (Highfields Capital): Short Digital Realty Trust (DLR)

Mitchell Julis (Canyon Partners) on Clear Channel Outdoor (CCO) & Apple (AAPL)

Keith Meister (Corvex Management): long Time Warner Telecom (TWTC) & Level 3 (LVLT)

David Stemerman (Conatus Capital): short African Bank (ABL:SJ)

Li Lu (Himalaya Capital) on Korean preferreds (Samsung, Hyundai)

Clifton Robbins (Blue Harbour Group) on CACI & Akamai

Tor Olav Troim (Seadrill) on opportunities in cyclical industries

Simeon McMillan (Columbia MBA, investment contest winner) on Tribune Company

Kyle Bass' Sohn Conference Presentation on Dex Media (DXM) & Japan

We're posting up notes from the Ira Sohn Conference 2013 in New York.  Next up is a summary of the presentation from Kyle Bass of Hayman Capital.  He presented the bull case on Dex Media (DXM), the newly formed entity after Dex One and SuperMedia merged and restructured.  He also touched on Japan again.


Long Idea: Dex Media (DXM)

Bass likes the former Yellow Pages play.  Combined destroyed $25B since 2006, since spun from VZ. Print yellow page ads have dropped at a 15% CAGR since 2002. SuperMedia and Dex One merged, two of the worst performing restructurings. Print is declining 18% per year ad infinitum, but Digital is growing 22%. Digital should be bigger than Print by 2016. Total revenue will flatten out, from $2.3B now to $2.0B. Could be $700M of EBITDA, debt looks attractive.

Sales team approach customers to run their online presence. Bank debt creates company at 2x EBITDA. IRR is in the 30s if it gets re-fi'd in next year. DXM, with more actual digital revenue than pure-play peers, trades at a cheaper multiple. $3.2B of debt on $2B Rev, $700M EBITDA, but FCF pays down debt. Equity is a tiny sliver, only $180M. Equity could go up 300% with a 3x multiple. Yes, fraught with risk, but bank debt is worth par. Equity is very small.


On Japan

He still believes they will have a full bond crisis in next few years. 10 Finance ministers in last 10 years.

For more on this manager, we've previously highlighted Kyle Bass on MBS, housing and gold.


Check out the rest of the hedge fund presentations from the event: notes from Ira Sohn Conference 2013.