Hedge Funds Start Dumping Live Nation Stock…

There now seem to be two groups left holding Live Nation stock: employees who can’t cash out, and suckers.




CEO Michael Rapino offered the first confidence-killer by dumping 40 percent of his own shares, for a near-$12 million payout.  Others, including Board members and even the CFO, followed with sell-offs of their own.

These guys know something the rest of us don’t.  And now, there’s another group going cold: hedge funds.  According to a recent report from hedge-tracking insider Arnold Frias of Insider Monkey, Live Nation is getting dropped by a number of high-profile, top-tier funds.


“As Live Nation Entertainment, Inc. (NYSE:LYV) has witnessed a fall in interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain ‘tier’ of hedges that elected to cut their full holdings last quarter,” the report states.


That includes some very big, well-capitalized names.  “Intriguingly, Chase Coleman and Feroz Dewan’s Tiger Global Management LLC dropped the largest position of the ‘upper crust’ of funds we monitor, valued at close to $30.9 million in stock, and Larry Foley and Paul Farrell of Bronson Point Partners was right behind this move, as the fund sold off about $17.6 million worth.”

Those are the some serious sellouts, but even worse, Frias found very few buying in.  “Over the last six-month time frame, Live Nation Entertainment, Inc. (NYSE:LYV) has experienced zero unique insiders purchasing, and zero insider sales,” the assessment continued.


Meanwhile, Live Nation’s stock has yet to recover after the very serious blow dealt by Rapino himsef.  Then again, this is a classic chicken-or-egg: Rapino is arguably the most knowledgeable on where this stock is going.  And if Rapino thought the stock was going up, he wouldn’t have sold out.

5 Responses

  1. Mike Corcoran
    Mike Corcoran

    LiveNation stock price has doubled in the past 12 months. It could be that some investors feel it’s maxed out for now after a pretty good run.

    The stock is still off its all-time high, tho.

  2. Sad

    Just a pump and dump scheme really. The reality is that this is where the best and brightest minds are applying themselves these days in America — not on product or building great companies but scamming the stock market.

  3. Ugh

    This reporting is shoddy. Talk to at least one financially savvy person before publishing…

    As noted, the stock has gone up considerably over the past year, so this selling is likely just profit taking. And how is the fact that no insiders are buying worse than people selling? I wouldn’t expect many execs to invest cash into a company, particularly during a run-up in stock price… they already own stock through grants/options and, if they are at all smart, are looking to diversify instead. Also, since they are individuals, they likely have a need for cash moreso than a fund that has many sources of cash.

    Having said that, LN may not be a good investment, solely because of the big run up, but not for many of the reasons you cite.


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