Lucerne Capital Management LP Shifts Investment Strategy in Q3 2020 with Significant Increase in Altice USA Holdings and New Position in Grubhub

Lucerne Capital Management LP is a hedge fund management company that specializes in long-short and event-driven equity strategies. The company recently released its Q3 2020 13F holdings report, which shows a significant shift in its investment strategy from the previous quarter.

The report reveals that Lucerne Capital has significantly increased its holdings in Altice USA Inc (ATUS) while also initiating a new position in Grubhub Inc (GRUB). The fund’s holdings in ATUS increased by 218%, from 81,100 shares in Q2 2020 to 258,100 shares in Q3 2020, while its holdings in GRUB amounted to 20,400 shares.

In terms of value, the fund’s holdings in ATUS increased from $101,000 in Q2 2020 to $265,000 in Q3 2020, translating to a whopping 162.4% increase in value. Similarly, its holdings in GRUB were valued at $0 in Q2 2020 but rose to $35,000 in Q3 2020, representing a new investment in the company.

The Q3 2020 13F holdings report reflects the fund’s bullish stance on the telecommunication and internet service provider sector, which Altice USA is a part of. This sector is experiencing rapid growth, driven by the increased adoption of remote work and learning due to the COVID-19 pandemic.

Altice USA operates the fourth-largest cable television network in the United States, providing internet, television, and phone services. The effect of the pandemic has resulted in increased demand for these services, as more individuals rely on them for communication and entertainment purposes. Therefore, Lucerne Capital’s increased holdings in the company are justified given the potential growth opportunities in the sector.

On the other hand, Lucerne Capital’s decision to initiate a position in Grubhub reflects the fund’s bullish stance on the e-commerce sector. Grubhub is a food delivery company that experienced explosive growth during the pandemic due to increased demand for takeout and delivery services as people avoided dining out.

The company grew its revenue by over 40% during the pandemic, and its shares have risen by around 50% since March 2020. The acquisition of Grubhub by Just Eat Takeaway, a leading food delivery company, also provides an opportunity for further growth in the future. Lucerne Capital’s decision to invest in Grubhub seems like a smart move, given the potential for growth in the e-commerce sector.

The changes in Lucerne Capital’s holdings reflect the fund’s ability to identify and capitalize on market trends. By increasing its holdings in Altice USA, the fund is positioned to benefit from the growth opportunities in the telecommunication and internet service provider sector, while its investment in Grubhub provides exposure to the e-commerce sector, which has experienced significant growth during the pandemic.

In conclusion, the Q3 2020 13F holdings report by Lucerne Capital Management LP shows a significant shift in the fund’s investment strategy, with increased holdings in Altice USA and a new position in Grubhub. The report reflects the fund’s ability to identify market trends and capitalize on potential growth opportunities.