Anchorage Capital, managed by Kevin Michael Ulrich and Anthony Davis, has significantly reduced its activist stake in DHT Holdings Inc (NYSE:DHT). A new filing with the U.S. Securities and Exchange Commission revealed that Anchorage Capital owns 2.68 million DHT Holdings Inc (NYSE:DHT) shares, down from 5.18 million shares the fund held previously. The new stake represents 2.90% of the company’s common stock outstanding.
According to the filing, Anchorage Capital sold 1.75 million shares at an average price of around $8 per share on January 7. In addition, more 750,000 shares were sold at a weighted average price of $8.41 per share on January 8.
New York-based Anchorage Capital was founded in 2003 by Kevin Michael Ulrich and Anthony Davis. Both Kevin Ulrich and Anthony Davis previously worked at Goldman Sachs. Anchorage Capital is a credit, special situations, and distressed debt hedge fund with a strong track record. The fund returned 8.7% during the first half of 2014, 20.9% in 2013, and 16.4% in 2012, according to the fund’s 2014 Q2 investor letter. Anchorage has nearly $15 billion in AUM managed by 60 investment professionals. According to its latest 13F filing, the value of the fund’s equity portfolio totaled $4.4 billion at the end of the third quarter of 2014. The fund’s largest equity positions for the quarter were Houghton Mifflin Harcourt Co (NASDAQ:HMHC), Cheniere Energy Inc. (NYSEMKT:LNG), and Central Pacific Financial Corp. (NYSE:CPF).
Anchorage Capital held 21.39 million shares in Houghton Mifflin Harcourt Co (NASDAQ:HMHC). The fund’s second largest holding was Cheniere Energy Inc. (NYSEMKT:LNG), in which the fund cut its stake during the third quarter, holding 5.09 million shares of the company. Anchorage Capital disclosed ownership of 8.07 million shares of Central Pacific Financial Corp. (NYSE:CPF).
DHT Holdings Inc (NYSE:DHT) is an independent crude oil tanker company, with a market cap of more than $820 million. The company reported a net loss of $7.1 million, or $0.10 per share, for the third quarter of 2014, compared to a net loss of $4.1 million, or $0.26 per share, in the same quarter of 2013. Net revenue for the quarter was $21.8 million, up from $11.2 million in the same quarter of 2014.
At the end of the third quarter of 2014, DHT Holdings Inc (NYSE:DHT) completed the acquisition of Samco Shipholding Pte. Ltd., a private company incorporated that owns and operates a fleet of seven very large crude oil tankers (VLCCs). The deal also included Samco’s 50% ownership in Goodwood Ship Management Pte. Ltd., a private ship management company incorporated under the laws of the Republic of Singapore. Goodwood currently manages all of DHT Holdings Inc (NYSE:DHT)’s vessels. As a result of the acquisition, DHT Holdings Inc (NYSE:DHT) now has a fleet of 20 VLCCs, two Suezmaxes and two Aframaxes. DHT Holdings Inc (NYSE:DHT) obtained a committed and underwritten offer from affiliates of Nordea Bank AB and DNB Bank ASA to refinance Samco’s debt at a rate of LIBOR plus 2.5%, with leverage and repayment profiles consistent with DHT’s other debt facilities.
In connection with the acquisition, DHT Holdings Inc (NYSE:DHT) issued 23.1 million shares of common stock at a price of $6.50 per share and $150 million principal amount of convertible senior notes due 2019 with a fixed rate of 4.5% per annum and convertible into common stock of the company at a conversion price of $8.125 per share.
DHT Holdings Inc (NYSE:DHT) currently trades at around $9. The company’s stock has shown a great performance during last year. Year-do-date performance of the stock stands at 23.67%, and six-month performance stands at 35.94%. The stock has a 52 week high of $9.22, and a 52 week low of $5.20. The consensus average target price is $10.65 for the company’s stock, while the consensus average recommendation is ‘BUY.’
Other shareholders betting big on DHT Holdings Inc (NYSE:DHT) include Cerberus Capital Management, led by Stephen Feinberg, which holds 7.63 million shares, and Canyon Capital Advisors, run by Joshua Friedman and Mitchell Julis, which owns 7.08 million shares of the company. Another investor, Christopher Pucillo’s Solus Alternative Asset Management disclosed ownership of 6.21 million shares of DHT Holdings Inc (NYSE:DHT), as of the end of the third quarter of 2014.
Disclosure: none
