Paloma Dumps 200,000 Lattice Semiconductor LSCC Shares in $9.8 Million Exit

On Nov. 14, Paloma Partners Management Co disclosed it sold out its entire Lattice Semiconductor Corporation (NASDAQ:LSCC) position, previously valued at $9.8 million on June 30. This was 1.4% of its reported portfolio.

What happened

According to a Nov. 14, SEC filing, Paloma Partners Management Co. eliminated its position in Lattice Semiconductor Corporation (NASDAQ:LSCC), selling 200,000 shares. The transaction value is $9.8 million based on quarterly average pricing.

What else to know

• Paloma fully exited Lattice Semiconductor
• As of Nov. 14, Lattice Semiconductor shares were priced at $64.18, up 26.8% over the past year, outperforming the S&P 500's total return by 12.1 percentage points

Company overview

Company snapshot

Lattice Semiconductor develops and sells programmable logic devices, focusing on FPGAs and related solutions for diverse end markets. The company provides differentiated, application-specific programmable logic products to original equipment manufacturers. It develops and sells semiconductor products in Asia, Europe, and the Americas, serving OEMs in communications, computing, consumer, industrial, and automotive end markets.

• Develops and sells field programmable gate arrays (FPGAs), including Certus-NX, ECP, Mach, iCE40, and CrossLink families, as well as video connectivity application-specific standard products.
• Generates revenue through direct product sales, technology licensing (IP and IP core), and patent monetization, leveraging both direct and indirect sales channels.
• Serves original equipment manufacturers (OEMs) in communications, computing, consumer, industrial, and automotive markets across Asia, Europe, and the Americas.

Foolish take

Paloma Partners Management sold its entire stake in Lattice Semiconductor. The shares had done well, beating the market. This year, through Dec. 5, the stock returned 39.2%, higher than the S&P 500's 18.2% and the Nasdaq Composite's 22.8%.

While it's unclear what prices the investment firm fetched for its shares, it left money on the table given the stock trades at higher levels subsequent to Sept. 30. The 7.5% beat the S&P 500 and Nasdaq Composite by 4.6 and 3.4 percentage points, respectively.

Paloma Partners has a complex mix of investments in its remaining portfolio that it reports on its 13-F filing. This includes equities, convertible notes, and put and call options.

Glossary

13F: A quarterly SEC filing required from institutional investment managers to disclose their U.S. equity holdings.

Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.

Exited position: When an investor sells all shares of a particular security, reducing their holding to zero.

Stake: The amount or percentage of ownership an investor holds in a company.

Field Programmable Gate Array (FPGA): A type of semiconductor chip that can be programmed after manufacturing for specific functions.

Original Equipment Manufacturer (OEM): A company that produces parts or equipment used in another company's end products.

Technology licensing (IP and IP core): Allowing others to use proprietary technology or intellectual property, often for a fee.

Patent monetization: Generating revenue by licensing or selling patents to other companies.

Indirect sales channels: Selling products through intermediaries, such as distributors or resellers, rather than directly to customers.

Application-specific standard products: Semiconductor products designed for particular functions but sold to multiple customers.

Downsizing (in portfolio context): Reducing the size or value of a particular investment within a portfolio.

TTM: The 12-month period ending with the most recent quarterly report.

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy.