Leon Cooperman Lowers Stake In Chimera Investment

Leon Cooperman on SandRidge Energy

Leon Cooperman disclosed a 6.5% interest Chimera Investment Corporation (NYSE:CIM) based on his 13D filing with the Securities and Exchange Commission (SEC) dated November 18, 2014, down from 7.6% disclosed in February 2014.

Details of Cooperman’s investment

Based on the filing, Cooperman is the beneficial owner of more than 66.62 million shares of Chimera Investment Corporation (NYSE:CIM). He has sole voting power and sole dispositive power over approximately 49.47 million shares.

Cooperman also shared voting power and dispositive power over approximately 17.15 million shares, which he beneficially owns.

Chimera Investment is a specialty finance company that directly or indirectly invests in residential mortgage-backed securities (RMBS), residential mortgage loans, commercial mortgage loans, real estate-related securities and other asset classes.

Cooperman purchased his stake in Chimera at a price range of $3.05 to $3.34 per share on September 26 to November 19.

The shares of Chimera closed at $3.35 per share on Thursday.  The company has $3.42 billion in market capitalization, making Cooperman’s stake worth approximately $200 million.

Chimera Investments Q3 financial results

Last week, Chimera reported a net income of $377.6 million or $0.37 per share for the third quarter, up from $67.4 million or $0.07 per share in the same period last year. Its core earnings were $0.11 per share and book value of $3.50 per share.

During the period, the company acquired rights to approximately $4.8 billion of seasoned residential mortgage loans through the purchase of certain subordinate notes and trust certificates.

Chimera declared a dividend of $0.09 per share during the quarter.

Cooperman’s view on U.S. stock market

During a previous interview with CNBC’s Fast Money: Half Time Report last month, Cooperman said he is still optimistic on the U.S. stock markets. He said, “We feel pretty comfortable. I’ve been far too cautious on bonds, but believe me they make no sense at this level of return.”

Meanwhile, the 13F filing of Cooperman’s Omega Advisors showed that it acquired 410,000 shares of Alibaba Group Holding Ltd (NYSE:BABA) and more than 8.7 million shares of Groupon Inc (NASDAQ:GRPN) for the third quarter.

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