A Closer Look at Lion Point Capital's Q4 2022 Holdings Report: Focus on Event-Driven and Special Situation Investing

Lion Point Capital, LP is a hedge fund with a focus on event-driven and special situation investing. The firm recently filed its 13F report for Q4 2022, which provides a snapshot of its holdings as of December 31, 2022. In this post, we will take a closer look at the changes in Lion Point Capital's holdings from Q3 to Q4 2022.

The 13F report includes information on the issuer name, option type, number of shares, value of shares, and the percentage change in holdings from Q3 to Q4 2022. Let's start by looking at the top five holdings of Lion Point Capital:

1. SPDR S&P 500 ETF TR (SPY): This exchange-traded fund (ETF) is designed to track the performance of the S&P 500 index. Lion Point Capital increased its holdings in SPY significantly from Q3 to Q4 2022, with a percentage change of 395.3%. The value of its holdings in SPY also increased from $81,616,000 to $404,228,000.

2. SPDR SER TR (XOP): This ETF focuses on companies in the energy exploration and production industry. Lion Point Capital also increased its holdings in XOP, but the percentage change was relatively small at 57.2%. The value of its holdings in XOP increased from $46,770,000 to $73,511,000.

3. CHORD ENERGY CORPORATION (CHRD): This company is engaged in the exploration and production of oil and gas. Lion Point Capital decreased its holdings in CHRD by 15.7% from Q3 to Q4 2022. The value of its holdings in CHRD decreased from $33,607,000 to $28,339,000.

4. WISDOMTREE INC (WT): This company is an asset management firm that offers a range of ETFs. Lion Point Capital maintained its holdings in WT from Q3 to Q4 2022, with no change in the number of shares or the value of its holdings.

5. MARINUS PHARMACEUTICALS INC (MRNS): This biopharmaceutical company is focused on developing treatments for epilepsy and other neurological disorders. Lion Point Capital increased its holdings in MRNS by 13.3% from Q3 to Q4 2022. The value of its holdings in MRNS increased from $18,959,000 to $21,480,000.

Aside from the top five holdings, Lion Point Capital also made some interesting moves in other positions. For example, the fund added a call option on iShares Inc (EEM) in Q4 2022, with 500,000 shares valued at $18,950,000. This represents a significant bet on emerging markets, as EEM tracks the performance of companies in developing markets.

Another notable move was Lion Point Capital's decision to sell its entire holdings in DURECT Corp (DRRX) and STRONGHOLD DIGITAL MINING IN (SDIG). While the reasons behind these moves are unclear, it's possible that the fund saw better opportunities elsewhere or wanted to raise cash for other investments.

Overall, Lion Point Capital's 13F report for Q4 2022 shows that the fund made some significant moves in its portfolio. With an increased focus on SPY and XOP, as well as a new call option on EEM, it seems that the fund is positioning itself for continued success in the event-driven and special situations investing space. As always, investors should conduct their own due diligence before making any investment decisions.