Discovery Capital Management, the macro hedge fund led by Tiger Cub Robert Citrone, has made a bold move into the media and entertainment space by acquiring a significant equity stake in AMC Entertainment, according to a report by Institutional investor.
In a recent 13G regulatory filing, the fund disclosed ownership of nearly 29.65 million shares — roughly 7% of AMC’s total outstanding stock — making it Discovery’s largest US-listed long equity position.
The investment marks a major shift for AMC, whose long-term struggles with debt, streaming competition, and post-pandemic foot traffic have made it a widely debated name on Wall Street. While most analysts rate the stock as a “hold,” Discovery is betting on a turnaround driven by restructuring efforts and improved box office momentum.
Discovery’s position stems from a multi-year investment trajectory. The fund initially purchased AMC’s 10% notes in the secondary market before converting them into convertible securities in 2024. This month, Discovery exchanged those converts for equity as part of a broader refinancing and litigation settlement package that brought in $223m in new capital and restructured $590m in 7.5% senior secured notes.
AMC’s CEO Adam Aron described the deal as a reset moment, emphasising reduced debt, fresh liquidity, and an improved outlook. Discovery concurs, expecting AMC to refinance a term loan in January at more favourable rates, and pointing to stronger per-patron profitability and a projected 15–20% year-on-year boost in the 2025 domestic box office.
The high-conviction move fits within Discovery’s hybrid macro and equity strategy and follows a solid first half of 2025, during which the fund returned 12.5%.
