The Strategic Rationale Behind 13D Management's $7.82 Million Viasat Bet

Investment Thesis

13D Management, a New York-based investment firm, recently revealed a significant new position in Viasat (NASDAQ: VSAT), acquiring 267,000 shares valued at approximately $7.82 million during the third quarter according to an SEC filing dated November 14. The move is far from arbitrary—it reflects a deliberate thesis about where the satellite communications sector is headed.

Portfolio Positioning and Scale

The Viasat stake now ranks as the fund’s third-largest holding, representing 7.5% of reported assets under management. This allocation signals serious conviction. The fund’s portfolio composition tells a story: top positions include Mercury Systems at $10.60 million and Qorvo at $8.08 million, followed by Viasat. These holdings cluster around capital-intensive, defense-adjacent, and semiconductor-oriented businesses with extended product development cycles.

As of the latest trading session, Viasat shares traded at $34.81, delivering 271.5% appreciation over the past 12 months—a stark contrast to the S&P 500’s 15% gain in the same timeframe.

Understanding the Company

Viasat operates across three primary revenue streams: satellite-based broadband delivery, in-flight connectivity for commercial aviation, and communications equipment for enterprise and government customers. The company generated $4.58 billion in trailing twelve-month revenue but reported a net loss of $522.34 million, reflecting the capital-intensive nature of its business model during a critical infrastructure buildout phase.

Market capitalization stands at $4.71 billion, positioning it as a meaningful player in the global connectivity infrastructure space.

The Inflection Point Thesis

Why allocate this capital now? The answer lies in Viasat’s transition from a heavy investment phase to improving cash generation. In recent quarterly results, the company narrowed net losses to $61 million from $138 million year-over-year while producing $69 million in free cash flow—a $58 million improvement. Operating cash flow expanded to $282 million as capital intensity declined and operational margins stabilized.

The catalyst: new satellite capacity coming online. Management expects the ViaSat-3 F2 satellite to commence operations in early 2026, with each ViaSat-3 unit engineered to deliver more bandwidth than Viasat’s entire pre-existing satellite fleet combined.

Visibility and Momentum

Complementing the satellite expansion, Viasat’s defense backlog reached record levels of $1.2 billion, representing 31% year-over-year growth. This provides multi-year revenue visibility for the government and defense verticals, reducing execution risk and supporting confidence in future cash generation.

Investment Context

The fund’s portfolio construction suggests a specific mandate: backing complex, capital-heavy enterprises at inflection points—businesses where near-term profitability challenges mask underlying value creation. Viasat fits this template precisely. The combination of surging demand for satellite connectivity, capacity expansion ramping up, and record defense ordering activity creates a compelling window for entry.

For 13D Management, this represents a thesis-driven allocation to a sector poised for structural acceleration.