This Hedge Fund Just Bought $32.8 Million in Fiber Infrastructure Stock
Key Points
Increased Uniti Group stake by 4,181,528 shares; estimated transaction value of $32.78 million (based on quarterly average price).
Quarter-end position value rose by $42.78 million, reflecting both added shares and price appreciation.
Transaction equates to a 3.07% shift in 13F reportable AUM.
Post-trade holding: 5,681,528 shares valued at $53.29 million.
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On May 15, 2026, Diameter Capital Partners disclosed a buy of 4,181,528 shares of Uniti Group (NASDAQ:UNIT), an estimated $32.78 million trade based on quarterly average pricing.
What happened
According to a May 15, 2026, SEC filing, Diameter Capital Partners LP added 4,181,528 shares of Uniti Group, with the estimated value of shares acquired totaling approximately $32.78 million based on the average closing price for the first quarter of 2026. The fund’s position in Uniti Group increased to 5,681,528 shares, with the stake’s quarter-end value up by $42.78 million from the prior filing period.
What else to know
- This was a significant buy; the Uniti stake now accounts for 4.99% of the fund’s 13F reportable assets under management.
- As of May 14, 2026, shares were priced at $11.25, up 42.6% over the past year and outperforming the S&P 500 by 15.29 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.93 billion |
| Net income (TTM) | $1.25 billion |
| Price (as of market close May 14, 2026) | $11.25 |
| One-year price change | 42.6% |
Company snapshot
- Owns and operates communications infrastructure, including fiber optic networks and wireless towers, serving the telecommunications sector across the United States
- Generates revenue primarily by leasing its fiber and wireless assets to telecom carriers and service providers under long-term contracts, leveraging its real estate investment trust (REIT) structure for recurring cash flows
- Main customers are wireless carriers, broadband providers, and other communications service companies seeking scalable and reliable network infrastructure solutions
Uniti Group is a leading specialty REIT focused on mission-critical communications infrastructure, with a national footprint of fiber and wireless assets. The company pursues a strategy of acquiring and constructing network assets to support the expanding data and connectivity needs of the telecommunications industry.
What this transaction means for investors
Buying a fiber infrastructure REIT like Uniti Group means betting that artificial intelligence's explosive growth will keep data centers hungry for connectivity faster than networks can expand. Hedge fund Diameter Capital Partners seems to be making that bet with this major $32 million purchase in Q1.
REITs are companies that own income-producing real estate and must distribute most profits as dividends to shareholders. Uniti owns fiber optic networks across the United States, leasing capacity to telecom companies and selling fiber services directly to consumers and businesses.
The company is benefiting from surging demand driven by artificial intelligence infrastructure. Hyperscalers building massive data centers need fiber connectivity to function, and Uniti reported its third-highest bookings quarter ever in Q1. Fiber revenue grew 15% year over year.
For investors, fiber REITs offer exposure to digital infrastructure without the volatility of tech stocks. The risk is capital intensity. Uniti plans to spend over $1 billion building fiber to reach 3.5 million homes by 2029, which pressures near-term profitability even as revenue grows.
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Sara Appino 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.
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