EJF Capital Finds A New REIT To Sink Its Money Into, Should Your Money Follow?

In Colony Capital Inc (NYSE:CLNY), EJF Capital decreased its stake to 10.20 million shares, worth $264.5 million, from 10.73 million shares it held at the end of 2014. Colony Financial recently closed a combination transaction with Colony Capital LLC, resulting in the formation of Colony Capital Inc (NYSE:CLNY), a real estate and investment management company with a market cap of $2.73 billion. Colony Capital Inc (NYSE:CLNY)’s financial results for the first quarter of 2015 weren’t very impressive, with its net income dropping to $3.6 million, compared to $16.38 million in the same quarter last year. The company pays a quarterly dividend of $0.37 per share, for a far more impressive yield of 6.09%. Another investor of the company is Brian Jackelow’s SAB Capital Management, which holds 5.30 million shares of the company as of March 31.

During the first quarter, EJF Capital was bullish on American Capital Ltd. (NASDAQ:ACAS), in which the investor upped its stake by 18% to 10.28 million shares, valued at about $151.97 million. American Capital Ltd. (NASDAQ:ACAS) is a global asset manager and private equity firm, with a market cap of $3.86 billion. Recently, American Capital Ltd. (NASDAQ:ACAS) said that its board of directors revised its plans to spin-off to its shareholders two newly-established business development companies (BDCs). Presently, the company intends to spin-off only one new BDC, which will be known as American Capital Income Ltd. At the time of spin-off, American Capital Income is expected to have about $4 billion of equity capital. In other news, American Capital Ltd. (NASDAQ:ACAS) last month announced that it invested $21.5 million in Electronic Warfare Associates Inc. (EWA), which provides electronic warfare, cyber security and advanced commercial test tool solutions to the United States and allied-nation government agencies and commercial customers. The investment will be used to refinance EWA’s existing indebtedness and provide capital for general corporate purposes. During the past year, shares of American Capital Ltd. (NASDAQ:ACAS) have declined by 5.08%. Brian Taylor’s Pine River Capital Management, in its latest 13F, disclosed ownership of 13.41 million shares of American Capital Ltd. (NASDAQ:ACAS).

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