he's well known for investing in undervalued companies with good future prospects and I'm sure he expects shale gas to prosper and exco are well placed in this area with good acquisitions.
Sentiment: Strong Buy
He is on record with a bullish stance on the future of energy industry in the US. He made an interesting move a few months ago to acquire cement and sand/gravel assets in West Texas, implying that there will be more demand for raw materials in the area for years to come. He's said that he is sometimes too early on his moves, which is the case here.
His position in EXCO was built with a cost basis north of current levels. While he waits, he holds $300M of the debt, so he's getting paid to wait. The rest of the longs are not that lucky, unless you count the $0.05 / qtr dividend. That's approaching 4% at this point.