King Street Capital Management Increases Holdings in USHY and HYG Amid Reductions in ATUS

King Street Capital Management's portfolio saw notable shifts during the second quarter of 2026, with changes disclosed on August 19th. The firm maintained a substantial position in Surgery Partners Inc (SGRY), which still accounts for 53.66% of the total portfolio value.

The most significant change involved an increase in shares held in ISHARES TR (USHY). The fund acquired 999,000 additional shares during this quarter, representing a +100% increase. This substantial purchase resulted in the ETF gaining a position worth $36.98M and now constitutes 19.5% of King Street's total portfolio value.

Similarly, ISHARES TR (HYG) experienced a significant boost with the addition of 237,100 shares (+100% from prior period). This ETF holding increased by $18.96M in value and now represents 10% of the portfolio.

In contrast, King Street reduced its stake in Vistra Corp (VST) from 590,000 shares to just 47,000 shares (-62.83%). This resulted in a decrease of $9.36M in the stock's value within the portfolio.

The largest reduction occurred with OPTIMUM COMMUNICATIONS INC (ATUS). The fund decreased its position by 1,754,000 shares (-61.09% from prior period), reducing the ETF's allocation to just 2.39%. This significant sell-off resulted in a loss of $45.31M.

King Street also trimmed its position in Talen Energy Corp (TLN) from 6,078 shares to just 47,000 shares (-62.9%). This change reduced the stock's portfolio allocation significantly and is reflected in the overall sector distribution.

Overall, King Street Capital Management demonstrated active management during Q2 2026 by both adding new positions (USHY and HYG) and exiting existing ones (ATUS). The firm also adjusted its holdings within other sectors. For more detailed information on their investment strategy or specific stock analysis, investors can refer to the full filing.