Investor Exits $3.4 Million Frontier Communications Stake as Verizon Deal's Potential Closure Looms

New York City-based Anchorage Capital Advisors fully exited its position in Frontier Communications Parent, Inc. (NASDAQ:FYBR) during the third quarter, a transaction reflecting an estimated $3.4 million change, per an SEC filing on November 14.

What Happened

According to an Securities and Exchange Commission (SEC) filing on November 14, Anchorage Capital Advisors reported selling its entire stake of 93,562 shares in Frontier Communications Parent (NASDAQ:FYBR). The estimated value of the transaction is $3.4 million based on the quarterly average price.

What Else to Know

The fund's remaining top holdings as of the filing:

• NYSE:GBTG: $58.1 million (57.3% of AUM)
• NYSE:XIFR: $33.4 million (33% of AUM)
• NYSE:AMBP: $9.8 million (9.7% of AUM)

As of Friday's market close, shares of Frontier Communications Parent were priced at $37.92, up 9% over the past year and underperforming the S&P 500's 14% gain in the same period.

Company Overview

Company Snapshot

Frontier Communications Parent, Inc. operates as a leading telecommunications provider with a substantial presence in the U.S. market. It provides data and Internet, voice, video, and related telecommunications services serving both consumer and business segments, and it operates a network infrastructure that supports broadband and voice services for residential, small business, and enterprise customers.

Foolish Take

The decision to step away from a stock in the middle of a transformational transaction can be as revealing as a new stake. Frontier is deep into its pending acquisition by Verizon, a deal that was announced more than a year ago and aims to accelerate fiber rollout and reshape the company’s competitive position. Yet even with record operational momentum—including 25% year-over-year consumer fiber broadband revenue growth and 133,000 quarterly fiber net adds—the uncertainty surrounding regulatory approval, capital intensity, and integration risk may be prompting some managers to de-risk exposure. Nevertheless, CEO Nick Jeffery underscored Frontier’s progress, saying, “The team absolutely crushed it — once again delivering our best quarter ever... We are committed to maintaining this momentum as we join forces with Verizon to ensure more Americans have access to high-speed fiber internet.”

According to the latest SEC filing, the manager fully exited its 93,562-share position in Frontier, an estimated $3.4 million reduction based on quarterly average pricing. The stock is up 9% over the past year but still trails the broader market. With top positions now concentrated in Global Business Travel Group, XIFR, and AMBP, the portfolio tilt continues to favor event-driven and capital-structure-sensitive names.

For long-term investors, the takeaway is clear: Frontier’s operational story is improving, but the next leg of value creation hinges on the Verizon transaction, execution of the fiber buildout, and the sustainability of cash flow as capex remains elevated.

Glossary

Exited its position: When an investor sells all shares of a particular holding, fully closing out that investment.
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
Reportable position: An investment holding that must be disclosed in regulatory filings due to its size or significance.
Quarterly average price: The average price of a security over a specific quarter, used to estimate transaction values.
Full exit: Selling all shares of a security, resulting in no remaining ownership in that asset.
Liquidation trend: A pattern where a fund or investor is selling off holdings, reducing the number or value of investments.
TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.