As disclosed by its latest 13G filing with the U.S. Securities and Exchange Commission, Steven Tananbaum’s GoldenTree Asset Management recently acquired a new position in Eagle Bulk Shipping Inc (NASDAQ:EGLE). The stake amounts to 2.68 million Common Shares, representing around 7% of the company’s outstanding stock. In addition, the investment firm also disclosed an increase in its holdings of FairPoint Communications Inc (NASDAQ:FRP). Following the purchase of 233,600 Common Shares, the fund’s position has grown to 1.83 million shares, translating to 6.8% of the company’s outstanding stock.
GoldenTree Asset Management was founded in 2000 by Mr. Tananbaum and specializes in corporate and structured credit. In addition, the firm manages an equity portfolio valued at around $874 million, with a strong emphasis on companies operating in the finance sector. Furthermore, it is one of the largest independent asset managers with around 21 billion in assets, spread across a wide range of absolute return, long only, and opportunistic strategies. GoldenTree Asset Management employs a bottom-up, fundamental value method to make investments, focusing on on total return with high margins of safety and identification of catalysts that drive returns. Apart from its stake in FairPoint Communications Inc (NASDAQ:FRP), the firm’s top picks include Delta Air Lines Inc (NYSE:DAL), CDW Corp (NASDAQ:CDW), and DineEquity Inc (NYSE:DIN). Excluding its ETF holdings, Delta Air Lines is currently GoldenTree Asset Management’s largest position, accounting for approximately 4.2% of its equity portfolio. There are several institutional investors backing this stock, which is was one of Wexford Capital’s top new stakes for the third quarter.
FairPoint Communications Inc (NASDAQ:FRP) is a provider of data, voice, and communication services operating in the United States. Apart from offering Internet services, the company offers high capacity data services comprising optical, Ethernet, IP services, and Ethernet virtual circuit technology for cellular backhaul. The $387 million market cap telecommunications firm is headquartered in North Carolina and employs more than 3,000 workers. At the end of 2014, FairPoint Communications stated it had reorganized its operational structure, naming Steven G. Rush as Senior Vice President of Northern New England Operations, and promoting Karen D. Turner to Senior Vice President of Strategy and Business Support. GoldenTree Asset Management seems to have welcomed the news, as suggested by the increase in its stake in the company.
Several institutional investors are bullish regarding FairPoint Communications Inc (NASDAQ:FRP), including John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co, which boasts a position of 5.1 million shares. Eric Edidin and Josh Lobel’s Archer Capital Management also holds a significant stake in the company, amounting to 1.8 million shares, which represent more than 3% of its equity portfolio.
Eagle Bulk Shipping Inc (NASDAQ:EGLE) is a $489 million market cap shipping company, engaged in the international ocean transportation of various bulk cargoes. The firm owns, charters, and operates dry bulk vessels dedicated to the transportation of a wide range of bulk cargoes, including iron ore, coal, grain, cement, and fertilizers. The shipping company has been undergoing some changes as of late, including reductions in its income from management fees and declining operating income. While some analysts suggest the sluggish pace of the Chinese real estate markets is hurting the shipping industry, the decrease in the firm’s management fees stems primarily from the reduction in the average number of third- and related-party vessels under management. Nevertheless, GoldenTree Asset Management seems to believe this trend will change, taking a bullish stance towards the stock. In fact, the newly acquired position was large enough to allow the firm to become Eagle Bulk Shipping’s largest institutional investor.
In addition to Mr. Tananbaum’s GoldenTree Asset Management, Eagle Bulk Shipping Inc (NASDAQ:EGLE) is backed by Don Morgan’s Brigade Capital. The hedge fund disclosed a stake of 390,900 shares in the third quarter and remains bullish regarding the stock. Paul Tanico’s Castlerock Asset Management also holds a significant position in the company, amounting to 102,600 shares.
Disclosure: Pablo Erbar holds no position in any stocks or funds mentioned.
