According to a recent filing with the Securities and Exchange Commission, Paul Orlin‘s Amici Capital has raised its stake in Seacor Holdings, Inc. (NYSE:CKH) by more than 28% to some 963,300 shares valued at $60.69 million, based on the current stock price. The holding amasses about 5.4% of the energy company’s outstanding shares.
The late Alex Porter established Amici Capital in 1976 with the backing of three friends. The name itself is taken from Latin and means ‘friends’. Orlin came onboard in 1993, offering his portfolio management expertise and a renewed focus on risk. Currently he is the firm’s chief investment officer and prior to Amici, worked in the risk arbitrage research and investment banking division at Goldman Sachs & Co., as well as at Walsh, Greenwood & Company. The market value of Amici’s public equity portfolio stands at $2.75 billion as of June 30, with about 23% of its investments in the healthcare sector and 22% in finance.
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Why is Amici Attracted to Seacor Holdings, Inc. (NYSE:CKH)?
Amici has held a stake in Seacor Holdings, Inc. (NYSE:CKH) since the second quarter of 2005. A significant hit during the 2008 financial crises and the prevailing challenging environment for energy companies has led to limited appreciation of Seacor’s stock price since Amici added the company to its portfolio. The stock is currently trading about 24.23% below its 52-week high and 8.6% above its 52-week low, which makes the current valuation enticing. Moreover, owing to the diversity of its business, Seacor Holdings, Inc. (NYSE:CKH) has taken a much milder hit than its other competitors. On a year-to-date basis the stock is down by about 14.7%. Although the offshore marine services segment contributed about 34% to the company’s top line in the second quarter, it was complemented by inland river services, which formed 22% of the operating revenues, shipping services, adding nearly 20%, and the Illinois corn processing segment, contributing about 17% to the quarterly revenues.
Seacor Holdings, Inc. (NYSE:CKH)’s Latest Performance
While the $96.72 million second quarter revenues from offshore marine services were significantly less than the $138.25 million the segment pulled in during the same quarter of last year, they marked an increase from $93.46 million in revenues from the first quarter, and reduced costs meant that Seacor Holdings, Inc. (NYSE:CKH) was able to turn in a profit from the segment as opposed to a loss in the previous quarter. During the trimester, the company also sold two offshore support vessels, one of which was to a joint venture in which Seacor Holdings, Inc. (NYSE:CKH) owns a 30.4% stake. Moreover, inland river services not only reported better revenue figures at $61.15 million, compared to $56 million in the second quarter of last year, but also registered a significant improvement in gross margins. Although shipping services did better in terms of revenues, it dipped in terms of margins, while the Illinois corn processing segment was worse off both in terms of revenues and margins.
How Do Other Hedgies View Seacor Holdings, Inc. (NYSE:CKH)?
Among over 700 hedge funds that we track at Insider Monkey, the interest in the company remained somewhat stable during the second quarter. At the end of June a total of 15 funds had $234.89 million in holdings of Seacor Holdings, Inc. (NYSE:CKH) as compared to the same number of investors holding $276.33 million worth of positions at the end of the previous quarter. Chuck Royce‘s Royce & Associates was the largest stockholder of Seacor Holdings, Inc. (NYSE:CKH) among these as of June 30, holding about 2.26 million shares valued at $159.98 million.
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