Billionaire Marc Lasry’s Favorite Stock Picks

Marc Lasry and his team decided to leave their investment in Gener8 Maritime Inc (NYSE:GNRT) unchanged, as Avenue Capital continued to hold 7.21 million shares valued at $50.9 million at the end of the first quarter. Oaktree Capital Management’s Howard Marks is also keeping an eye on the stock, as the fund holds a little over 13 million shares valued at 92.1 million. Gener8 Maritime Inc (NYSE:GNRT)’s popularity among the funds followed by Insider Monkey registered a boost over the quarter, with the number of long positions having increased to 20, from 18 a quarter before. Together, these funds hold more than half of the company’s common stock. Seaport Global Securities has recently initiated coverage of Gener8 Maritime Inc (NYSE:GNRT) and has assigned a ‘Buy’ rating with a price target of $15 per share.

Not So Optimistic About the Publishing Business?

Former number one bet, Houghton Mifflin Harcourt Co (NASDAQ:HMHC) stepped down a notch after Avenue Capital’s management decided to reduce its exposure. According to its latest 13F filing, the fund holds 3.15 million shares, down by 27% from the fourth quarter, worth approximately $62.9 million. Glenn J. Krevlin‘s Glenhill Advisors also holds a sizable position in Houghton Mifflin Harcourt Co (NASDAQ:HMHC): 7.65 million shares worth $152 at the end of the quarter. The publishing company reported first quarter results on May 4, missing analyst’s estimates. The company registered a loss of $1.34 per share on the back of $205.8 million in revenue, while market participants were expecting $199.6 million in revenue and a loss of $1.17 per share. Houghton Mifflin Harcourt Co (NASDAQ:HMHC) has recently named Joseph Abbott, a former banker, as its new Chief Financial Office, replacing Eric Shuman. The company filed for bankruptcy in 2012 as it was struggling to repay its debts. It emerged out of bankruptcy protection a month later and went public after 17 months.

Time To Buy Dynergy?

Dynegy Inc. (NYSE:DYN) is the only stock Marc Lasry and his team decided to increase exposure to. Avenue Capital’s stake in the company was boosted by 86% during the quarter to 6.08 million shares valued at $87.3 million, making it the new top equity position. Clint Carlson, on the other hand, chose to reduce his fund’s exposure to Dynegy Inc. (NYSE:DYN), having dumped 14% of its stake during the quarter. According to its latest 13F filing, Carlson Capital holds 8.1 million shares worth $116 million. Although it fell by as much as 45% by mid February, the stock staged a remarkable rally, climbing back to green territory and is 54% in the green year-to-date. Dynegy Inc. (NYSE:DYN) is currently trading at a P/E multiple of 12, slightly lower than the industry average of 14. The company’s revenue rose by 77% in the first quarter to $1.12 billion, while the loss per share narrowed to $0.13 per share from $1.49 reported a year before.

Disclosure: none.