Exploring Lionheart III Corp (LION) Investor Profile: Who’s Buying and Why?

You're looking at Lionheart Holdings' investor profile, and the real question is: who is defintely betting on their next business combination, and what does that tell you about the risk-reward profile? The short answer is that this is a classic 'arb' play, meaning it's overwhelmingly controlled by institutional money, not retail investors. As of the third fiscal quarter of 2025, institutional investors hold a massive 73.52% of the outstanding shares, representing over 25,744,376 shares in total. The largest single holder, First Trust Capital Management LP, owns 2,145,000 shares, a position currently valued at about $22.78 million, based on the per-share redemption value of $10.59 in the Trust Account.

Here's the quick math: with the Trust Account holding $243,788,499, these funds are essentially a low-risk bond proxy until a deal is announced, which is why you see merger arbitrage funds like Magnetar Financial LLC and LMR Partners LLP in the top ten. Their presence signals a bet on the floor value-the $10.59-but also a calculated risk on the pop from a successful deal announcement. So, the smart money is in, but they are playing the spread, not necessarily the long-term growth story yet. The investor base is a near-term liquidity indicator.

Who Invests in Lionheart III Corp (LION) and Why?

The investor profile for Lionheart III Corp (LION) is a clear reflection of its history as a Special Purpose Acquisition Company (SPAC), even after its business combination with Security Matters Limited (SMX) in 2023, or in the context of a new, related entity under the Lionheart umbrella. You see a distinct split between institutional heavyweights and the original sponsor group, which is typical for this structure.

The direct takeaway is that institutional investors hold the majority, seeking event-driven returns or value-creation from the management team's track record, while the sponsor group maintains a significant stake to align their interests with long-term growth. This isn't a stock for dividend seekers; it's a play on management's ability to execute a turnaround or growth strategy.

Key Investor Types and Their Holdings

Looking at the ownership structure as of late 2025, the breakdown is heavily skewed toward professional money managers. This is defintely not a retail-dominated stock. The concentration of ownership is high, with the top 25 shareholders owning over 97% of the company.

• Institutions: These are the largest block of owners, holding approximately 59% of the total shares, or over 18.9 million shares. This group includes mutual funds and large asset managers like First Trust Capital Management L.P., which held about 6.99% of shares as of mid-2025.
• Hedge Funds: A significant portion, around 17.1%, is held by hedge funds, totaling over 5.4 million shares. Names like LMR Partners LLP and Magnetar Capital Partners, LP are prominent here, holding 6.46% and 6.23%, respectively.
• Individual Insiders: The sponsor group and management, led by Chairman and CEO Ophir Sternberg, hold a substantial 23.9% stake, or 7,666,667 shares. This large insider ownership is a critical sign of alignment.

Here's the quick math: the institutional and hedge fund ownership combined accounts for over three-quarters of the tradable shares, showing a clear professional consensus on the investment's potential.

Investment Motivations: Seeking Value and Operational Upside

Investors aren't buying Lionheart III Corp (LION) for dividends-it offers a 0% dividend yield. Their motivation is rooted in the original SPAC thesis: finding a company that is 'poised for continued growth' but may need 'financial, operational, strategic or managerial enhancement to maximize value.' This is a value-creation play.

• Growth Prospects: The initial target, Security Matters Limited (SMX), was a technology company focused on supply chain tracking, a high-growth sector. Investors are betting on the combined entity's ability to scale this technology.
• Sponsor Track Record: The Lionheart Capital team, led by Ophir Sternberg, has a history of successful transactions, which attracts institutional capital looking to back proven operators.
• Financial Turnaround: The nine-month net income for Lionheart Holdings was $6.78 million as of September 30, 2025, but the overall financial health remains a focus, with a low cash balance of $336,455 at that same date. Investors are motivated by the potential for a significant multiple expansion if the company can convert its technology into consistent, high-margin revenue.

The investors here are essentially funding a strategic pivot, expecting a large return on capital from operational improvements rather than a stable, mature business model. For more on the long-term vision, you can review the Mission Statement, Vision, & Core Values of Lionheart III Corp (LION).

Investment Strategies: Arbitrage to Active Value

The strategies employed by these investors are a mix, heavily influenced by the nature of the SPAC life cycle and the subsequent de-SPAC transaction.

• Event-Driven/Merger Arbitrage: Hedge funds like Magnetar Capital often specialize in event-driven strategies. In the SPAC phase, they buy shares near the trust value (typically $10.00 per unit) to capture the small premium or the value of the detachable warrants, while maintaining the option to redeem their shares for cash if the merger is unfavorable. This is a low-risk, short-term strategy.
• Long-Term Holding (Institutional): Large institutions, including some mutual funds, are likely long-term holders. Their strategy is to underwrite the new company's business plan-in this case, the growth of the combined entity's technology platform-and hold for several years, expecting a 3x to 5x return on the initial investment.
• Active Value Investing (Sponsor): The insider group's strategy is purely active value creation. They use their capital and expertise to drive the post-merger integration, seeking to enhance the value of the underlying business to justify their substantial equity stake. Their goal is to maximize the value of their 23.9% ownership.

What this estimate hides is the high-risk nature of the post-SPAC market, where many de-SPAC entities trade below their initial IPO price. The current investors are taking a calculated risk on the management team's ability to navigate this challenge and deliver on the promised operational growth.

Institutional Ownership and Major Shareholders of Lionsgate Studios Corp. (LION)

You're looking for a clear picture of who is actually buying into the ticker symbol LION, and the first thing to understand is that the original Special Purpose Acquisition Company (SPAC), Lionheart III Corp, completed its merger and delisted back in 2023. So, the institutional data for the 2025 fiscal year now belongs to Lionsgate Studios Corp. (LION), the pure-play content studio that spun off from Starz. This new entity is heavily backed by institutions, who own a substantial chunk of the company, giving them significant sway over its direction.

As of late 2025, institutional investors hold approximately 59% of Lionsgate Studios Corp.. This level of ownership means that major investment funds, not individual retail traders, are the primary drivers of the stock's long-term stability and, frankly, its volatility. The top seven shareholders alone control over 52% of the company, which is a tight concentration that warrants close attention from any investor.

Top Institutional Investors and Shareholdings

The investor profile for Lionsgate Studios Corp. is dominated by a mix of private equity, asset managers, and specialized funds. This isn't just passive index money; these are sophisticated players who expect an active return on their capital. For instance, private equity firms collectively hold a massive 26% stake, signaling a clear focus on value creation and a potential future exit.

Here's a snapshot of the largest institutional holders and their reported positions as of the most recent 2025 filings, which is crucial for understanding the ownership landscape:

MHR Fund Management LLC and Liberty 77 Capital L.P. are effectively the co-largest institutional owners, each controlling around 13% of the shares outstanding. When two shareholders hold that much, their interests are defintely aligned with the company's strategic moves-or they'll make sure they are.

Recent Shifts in Institutional Ownership

The near-term ownership picture for Lionsgate Studios Corp. is mixed, which speaks to the ongoing debate over its valuation and growth prospects. In the three months leading up to June 2025, the total shares held by institutions actually saw a slight decrease of 1.42%, falling to approximately 29.399 million shares. This signals some profit-taking or a rotation out of the stock by a segment of the institutional base.

However, this aggregate number hides some very aggressive buying from specific funds. You need to look at the individual fund activity to see the real conviction:

• Bayberry Capital Partners increased its stake by a staggering 89.26%, buying over 3.3 million new shares.
• Point72 Asset Management, a major player, increased its position by 16.82%, adding over 650,000 shares.
• Significant shareholder Liberty 77 Capital L.P. also showed confidence in June 2025 by purchasing an additional 79,766 shares valued at $457,059.

Here's the quick math: while some institutions are trimming, the funds that are buying are doing so in a big way, suggesting a strong belief in a near-term catalyst or a deep-value play. For a deeper dive into the studio's financial position, you should read Breaking Down Lionsgate Studios Corp. (LION) Financial Health: Key Insights for Investors.

Impact of Institutional Investors on Strategy

The high institutional ownership in Lionsgate Studios Corp. is not passive; it's a direct lever on the company's strategy and stock price. With 59% of the company in their hands, these large investors can strongly influence board decisions and corporate direction. The most visible impact in 2025 has been the pressure for strategic change.

For example, activist investor Anson Fund Management took a position and publicly advocated for a potential sale of the company. They argue that the studio's deep content library-which includes franchises like The Hunger Games and John Wick-is undervalued by the market, and a sale to a larger media or technology company would bridge that valuation gap. This is a classic activist move: buy a significant stake and push for a transaction that unlocks immediate shareholder value.

• Stock Price Influence: Institutional buying and selling creates significant price swings. A recent 7.2% stock price gain was attributed to institutional investors reaping rewards from their holdings.
• Strategic Mandate: The concentration of ownership, especially the 26% held by private equity, keeps management focused on maximizing the value of its intellectual property (IP) and franchise-building strategy.

So, the big money is betting on a turnaround driven by the studio's IP and, potentially, a lucrative acquisition. Your action here should be to track the next round of 13F filings to see if the aggressive buyers are continuing to accumulate.

Key Investors and Their Impact on Lionheart III Corp (LION)

The investor profile for Lionheart III Corp (LION) is typical for a Special Purpose Acquisition Company (SPAC), dominated by institutional players, particularly arbitrage-focused hedge funds. This means the primary buyers are not long-term fundamental investors, but sophisticated funds looking to capture the spread between the stock price and the cash held in trust, which, as of the end of the third quarter of 2025, represented the bulk of the company's value.

The biggest influence on Lionheart III Corp (LION) is its leadership, but the day-to-day stock movement is driven by these large institutional holders. They are the ones who decide whether to redeem their shares for cash or vote in favor of a merger, making their sentiment critical to any potential business combination.

Notable Institutional and Insider Holdings (2025 Fiscal Year)

The shareholder base is highly concentrated, with the top 25 shareholders owning a staggering 97.8% of the company, according to the latest fiscal year data. This concentration gives a few key players outsized influence. The largest single holder is the insider, Ophir Sternberg, the Chairman and CEO, whose stake aligns his interests with the company's long-term success, post-merger.

Here's the quick math: Institutional investors hold roughly 59% of the shares, totaling 18,904,309 shares, and hedge funds alone account for 17.1%, or 5,462,598 shares. That's a lot of dry powder in the hands of a few firms.

The Arbitrage Play: Why Funds are Buying

The presence of firms like Magnetar Financial LLC and AQR Arbitrage LLC is a clear signal that a significant portion of the buying is driven by SPAC arbitrage. This is a low-risk strategy where funds buy the common stock and warrants, expecting the stock price to stay close to the trust value (typically $10.00 per share) and then redeem for cash if the proposed merger target isn't attractive.

To be fair, the influence of these funds is a double-edged sword. They provide the initial capital to get the SPAC off the ground, but they can also cause massive share redemptions right before a merger vote, which starves the target company of the expected cash proceeds. If you're looking for a deep dive into the company's long-term strategy, start with the Mission Statement, Vision, & Core Values of Lionheart III Corp (LION).

Recent Investor Moves and Their Influence

Looking at the latest filings, we see the continuous repositioning that is defintely characteristic of SPAC investors. Wolverine Asset Management, LLC, for example, reported a significant increase in their position by 34.3% in the quarter ending September 30, 2025. This kind of move suggests a bullish outlook on the company's ability to either find an attractive merger target or simply continue to generate income from the trust.

• Monitor Redemptions: High institutional ownership means a high risk of redemptions if a deal is announced that the market deems poor.
• Watch for 13D Filings: Any fund filing a 13D (indicating an activist intent) would signal a major shift, potentially pushing for a quicker deal or liquidation.
• Note Trust Income: The company's net income for the nine months ended September 30, 2025, was $6.78 million, primarily from interest income on the trust assets, which is what keeps the stock price floor firm for the arbitrageurs.

The influence of these investors is less about activism and more about capital allocation; they hold the power to pull $10.00 per share out of the deal, which is the ultimate leverage in a SPAC negotiation.

Market Impact and Investor Sentiment

You need to know who's in the boat with you at Lionheart III Corp (LION), and honestly, the public sentiment has been defintely cautious. The investor profile is dominated by the Sponsor, not a broad public float, which is a common but critical dynamic for a Special Purpose Acquisition Company (SPAC) that has faced significant redemptions.

The most telling market reaction came during the proposed business combination with Security Matters Limited (SMX) in 2023. Public shareholders overwhelmingly voted with their feet, electing to redeem 12,442,441 of the 12,500,000 public shares outstanding. Here's the quick math: that's a redemption rate of over 99.5%. This action triggered a deduction of approximately $126,913,898 from the Trust Account, leaving a minimal public float and signaling an extremely negative sentiment toward the initial deal's valuation and prospects.

• Public sentiment is highly cautious, driven by historical redemptions.
• The Sponsor now holds the vast majority of economic risk and control.
• Minimal public float means low liquidity and high price volatility.

The Dominant Shareholders: Sponsor and Insiders

The investor profile for Lionheart III Corp (LION) is now structurally skewed toward the insiders. The key player is the Sponsor, an affiliate of Lionheart Capital, LLC, led by Ophir Sternberg. This group's capital commitment and control are the primary drivers of the stock's stability and future direction, not the retail market.

As of November 2025, the company has 23,000,000 Class A Ordinary Shares and 7,666,667 Class B Ordinary Shares outstanding. The Class B shares, known as Founder Shares, are held by the Sponsor and give them substantial voting power. Plus, the Sponsor and Cantor purchased a total of 6,000,000 Private Placement Warrants at $1.00 per warrant, which gives them a future equity stake at an exercise price of $11.50 per share. This means their interests are tied to the long-term success of the eventual merger target, but it also creates a clear alignment of control.

Analyst Perspectives on SPAC Structure and Future

Since Lionheart III Corp is a blank check company, traditional analyst coverage with revenue forecasts is rare and often misattributed to other companies with the LION ticker. Instead, analysts focus on the structural risks and opportunities. The key question is whether the Sponsor can find a compelling target and avoid another high-redemption scenario. The high historical redemption rate is a permanent mark on the company's investor profile, signaling a low appetite for risk from the public side.

The company's net income for the nine months ended September 30, 2025, was $6.78 million, which is typical for a SPAC generating interest income on its trust assets. But that cash is meant to fund a merger, not operations. The market is waiting for a deal that is so compelling it can overcome the negative overhang of the past. The current low stock price and low liquidity-a direct result of the past market reaction-create a unique opportunity for a private investment in public equity (PIPE) investor to negotiate a favorable deal, but it also means the Sponsor has to deliver an exceptional target. You can find more detail on their strategic goals in their Mission Statement, Vision, & Core Values of Lionheart III Corp (LION).

The action item is clear: monitor the Sponsor's next move. Finance: track the daily volume and price movement for signs of institutional accumulation, as that will be the first real indicator of positive sentiment toward a new deal.