Here’s Why White Falcon Capital Sold its Maxar (MAXR) Stake

White Falcon Capital Management LLC, an investment management firm, published its fourth quarter 2022 investor letter – a copy of which can be downloaded here. A quarterly net increase of 2.52% has been recorded by the fund for the fourth quarter of 2022, below the S&P 500 (CAD) Index’s 5.25% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

In its Q3 2022 investor letter, White Falcon Capital Management mentioned Maxar Technologies Inc. (NYSE:MAXR) and explained its insights for the company. Founded in 2017, Maxar Technologies Inc. (NYSE:MAXR) is a Westminster, Colorado-based space technology company with a $3.8 billion market capitalization. Maxar Technologies Inc. (NYSE:MAXR) delivered a -0.83% return since the beginning of the year, while its 12-month returns are up by 91.67%. The stock closed at $51.31 per share on January 20, 2023.

Here is what White Falcon Capital Management has to say about Maxar Technologies Inc. (NYSE:MAXR) in its Q3 2022 investor letter:

“Half of the portfolio had positive realized and unrealized gains for the year. Out of these, EPAM Systems and Maxar were the largest positive contributors to performance. In addition, our weight in the commodity sector, including the precious metals hedge, produced substantial positive returns.

Maxar Technologies provides satellite images to the defense and corporate sector. The company was going to launch its new and improved Legion satellites but was faced with delays due to which investors lost patience and sold the stock. We saw a good quality company beset by temporary delays with strong FCF available for less than 10x EBITDA and bought the stock at an average price of C$35 per share. In December, Advent, a Private Equity firm, announced that they are going to buy-out Maxar and take it private at above C$70 per share. We sold our position and redeployed the cash into other attractive opportunities.”

Our calculations show that Maxar Technologies Inc. (NYSE:MAXR) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Maxar Technologies Inc. (NYSE:MAXR) was in 16 hedge fund portfolios at the end of the second quarter of 2022, compared to 15 funds in the previous quarter. Maxar Technologies Inc. (NYSE:MAXR) delivered a 150.17% return in the past 3 months.

In January 2023, we published an article that includes Maxar Technologies Inc. (NYSE:MAXR) in 12 Best Performing Growth Stocks in 2022. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters Q4 2022 page.

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Disclosure: None. This article is originally published at Insider Monkey.