Why One Fund Bought $8 Million of Viasat Stock and Made It a Top 3 Holding

Core Insights - 13D Management has initiated a new position in Viasat valued at approximately $7.82 million, indicating a belief that the market has not fully priced in the upcoming capacity and cash flow from new satellites [1][2]. Company Overview - Viasat, Inc. is a leading provider of broadband and communications solutions, utilizing its satellite infrastructure to deliver connectivity across various markets, including commercial and government clients [6]. - The company reported a market capitalization of $4.71 billion and a revenue of $4.58 billion for the trailing twelve months (TTM) [4]. Financial Performance - Viasat narrowed its net loss to $61 million from $138 million year-over-year and generated $69 million in free cash flow, reflecting a $58 million improvement [10]. - Operating cash flow increased to $282 million as capital intensity decreased and margins stabilized [10]. Market Position and Growth Potential - The ViaSat-3 F2 satellite is expected to enter service in early 2026, designed to deliver more bandwidth than the entire legacy fleet, indicating significant growth potential [11]. - The defense backlog reached a record $1.2 billion, up 31% year-over-year, enhancing visibility into future revenue streams [11]. Investment Context - The new position in Viasat represents 7.5% of 13D Management's reportable assets under management, highlighting the fund's strategic focus on capital-intensive businesses with long product cycles [3][12]. - Viasat's stock has increased by 271.5% over the past year, significantly outperforming the S&P 500, which rose by 15% in the same period [3].