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Luxor Capital Reduces Its Position in Twenty-First Century Fox

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Luxor Capital and Twenty-First Century Fox

In the fourth quarter, Luxor Capital lowered its position in Twenty-First Century Fox (FOXA) by selling 11.3 million shares, bringing its share holdings in the company to 5.5 million shares at the end of 4Q14. Luxor Capital’s portfolio currently has an exposure of 3.9% to FOXA. Other media and telecommunications companies in Luxor Capital’s portfolio were AMC Networks (AMCX), AT&T (T), and Liberty Global (LBTYA), which together with FOXA, make up 7.96% of the hedge fund’s portfolio.

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Overview of Twenty-First Century Fox

Twenty-First Century Fox, a diversified global media and entertainment company, is home to a number of cable, broadcasting, and film networks and properties:

  • Fox Broadcasting Company
  • FX
  • Fox News Channel
  • Fox Business Network
  • Fox Sports
  • National Geographic Channel (or NGC)
  • Yankees Entertainment and Sports (or YES) Network
  • Fox Pan American Sports
  • MundoFOX
  • STAR TV
  • Twentieth Century Fox Film Corporation
  • Twentieth Century Fox Television
  • Shine Group

Fox operates under five reporting segments: Cable Network Programming, Television, Filmed Entertainment, Direct Broadcast Satellite Television (or DBS), and Other, Corporate, and Eliminations.

Disposal of Sky Italia and Sky Deutschland

In November 2014, Fox sold its 100% stake in Sky Italia and its 57% ownership in Sky Deutschland to television behemoth British Sky Broadcasting Group (or BSkyB) for about $8.8 billion. Fox received $8.2 billion of this amount in cash. The remaining $650 million went into buying a 21% interest in BSkyB’s NGC International. This acquisition took Fox’s ownership stake in NGC International to 73%.

Strong 2Q15 performance

Excluding revenues from the DBS segment, in which Sky Italia and Sky Deutschland had operated, Fox’s revenues grew 10% year-over-year (or YoY) to $7.4 billion. This increase represented higher revenues from the Cable Network Programming segment and higher theatrical revenues from the Filmed Entertainment segment.

Adjusted net earnings came to $1.1 billion, or $0.53 per share, compared to $756 million, or $0.33 per share, for the corresponding quarter during the previous year. These figures do not include sales gains for the DBS business and other one-time events.

Fox makes up 1.79% of the iShares S&P Global Consumer Discretionary ETF (RXI). The company is also a component of the Vanguard Mid-Cap ETF (VO). Fox accounts for 0.01% of VO’s portfolio.

In the next part, we’ll discuss the fund’s position change in AMC Networks (AMCX).

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