King Street Capital is an investment management company founded by Brian J. Higgins and Francis Biondi Jr. in 1995. It had approximately $546 million assets in its 13F as of June 30, 2011. Based in New York, the firm invests in the public equity and fixed income markets globally with a focus on distressed companies, equity, bonds, foreign exchange, warrants and options. We like King Street because they invest in some of the lesser known stocks. Investors can generate new investment ideas by focusing on their top stock picks.
King Street filed an amended 13F form on November 4th and restated its holdings. Below we compiled a list of top 15 positions of King Street Capital at the end of June, 2011. The company recently announced the amended second quarter positions.
King Street Capital’s Top Stock Picks
Pandora Media Inc (P): Pandora is an Internet radio in the United States. As of January 31, 2011, it had over 80 million registered users. For the three months ending July 31, 2011, the company reported revenue of $66.97 million, compared with $30.84 million for the same quarter a year ago. But it suffered $1.81 million loss in net income, compared with $1.63 million gain last year. King Street Capital had $104 million invested in the stock and it lost 20.31% since the end of June. P has a market cap of $2.45B.
Bank of America (BAC): Bank of America is a financial institution, serving individual consumers, small and middle market businesses, corporations and governments with banking, investing, asset management and other financial and risk management products and services. Bank of America reported revenues of $28.7 billion for the third quarter of 2011. Third quarter net income was $0.56 per share. Compared to a loss of $7.6 billion a year ago, Bank of America made a profit of $5.9 billion in the third quarter. The company is expected to lose $0.06 in 2011 and earn $1.01 in 2012. King Street had $54.8 million invested in BAC and the stock lost 41.10% since the end of June. It has a market cap of $65.37B. John Paulson had over $600 million invested in BAC.
Sterling Financial Corp (STSA): Sterling is a bank holding company. The company reported net income of $11.33 million for the third quarter of 2011, compared with a loss of $48.02 million for the same quarter a year earlier. King Street invested $47.8 million in STSA and the stock lost 2.92% since the end of June. STSA has a market cap of $946.88M. Kevin Michael Ulrich’s Anchorage Advisors had $37 million invested in STSA.
United Community Banks (UCBI): United Community Banks is a bank holding company conducts its operations through 27 separate community banks. For three months ending September 30, the company reported net loss of $6.2 million, but this is still much better than the loss of $236.41 million for the same quarter a year earlier. King Street had $43.4 million invested in UCBI and it lost 31.34% since the end of June. UCBI has a market cap of $406.60M. James Dinan’s York Capital Management and Robert Pohly’s Samlyn Capital both invested $20+ million in UCBI.
PNC Financial Services Group Inc (PNC): PNC is engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking. The company reported that its net income fell to $826 million, or $1.55 per share for the three months ending September 30, 2011, down from $1.09 billion, or $2.07 per share for the same period a year earlier. But the results were still better than the predicted $1.50 per share. The company’s revenue was down 2% to $3.54 billion from $3.6 billion, missing the estimation of $3.56 billion. King Street had $35.8 million invested in PNC and the stock lost 8.63% since the end of June. It has a market cap of $28.13B and a P/E ratio of 8.61. Ken Fisher had $363 million invested in PNC at the end of June.
