Pine River Capital Management, managed by Brian Taylor, has initiated a new position in Fifth Street Asset Management Inc (NASDAQ:FSAM). A new filing with the U.S. Securities and Exchange revealed that Pine River Capital Management holds 809,100 Class A common stock shares of Fifth Street Asset Management Inc. (NASDAQ:FSAM). The stake is passive by nature, and equates to 13.5% of the company’s common stock outstanding.
Pine River Capital Management is founded by Brian Taylor in 2002. Taylor has an MBA from University of Chicago. He launched the fund with only $5.3 million, and it now has more than $4 billion in AUM. Pine River Capital Management is a credit hedge fund and pursues several strategies including global convertible bond arbitrage and equity driven event investing. The fund returned 91% in 2009.
Pine River Capital Management keeps its focus on technology, financial and healthcare stocks. The value of the fund’s equity portfolio totaled $8.5 billion at the end of the third quarter of 2014. The fund loves American Capital Ltd. (NASDAQ:ACAS), Verizon Communications Inc. (NYSE:VZ), Medtronic Inc. (NYSE:MDT), which are represented as its top three holdings for the third quarter. Pine River Capital Management was bullish on American Capital Ltd. (NASDAQ:ACAS), in which it upped its stake by more than 40% to 11.07 million shares. Verizon Communications Inc. (NYSE:VZ) was second most valuable holding, in which the fund disclosed ownership of 2.40 million shares. The fund added more Medtronic Inc. (NYSE:MDT) shares during the third quarter, holding 1.91 million shares, an increase of 21% from the previous quarter.
Fifth Street Asset Management Inc (NASDAQ:FSAM) is a credit-focused asset manager. The firm has more than $6 billion of assets under management across two publicly-traded business development companies, Fifth Street Finance Corp. (NASDAQ:FSC) and Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR), as well as multiple private investment vehicles.
In November, Fifth Street Asset Management Inc (NASDAQ:FSAM) completed its initial public offering (IPO) of 6 million shares of Class A common stock. The offering was priced at $17.00 per share. On October 30, 2014, the company’s shares began trading on the NASDAQ Global Select Market under the symbol “FSAM.” Last week, we published FSAM’s earnings call transcript.
Last month, Fifth Street Asset Management Inc (NASDAQ:FSAM) reported third-quarter 2014 financial results. The company stated that these financial results “reflect the full period results of the company’s predecessor, Fifth Street Management Group, and its combined funds”. In the third quarter ended September 30, 2014, total revenues were $25.4 million, up 44.1% compared to $17.6 million for the same quarter of 2013. Adjusted net income was $11.8 million for the quarter, representing an increase from $9.7 million in the same period in 2013.
Eight members of the senior management teams of Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR) and its affiliate Fifth Street Asset Management Inc. (NASDAQ:FSAM) purchased the company’s common shares in the open market. Senior management owns 5.4% of Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR) common shares, including Chief Executive Officer Leonard Tannenbaum, who bought 728,363 shares. Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR) said in a news release that the senior management teams collectively purchased $7.6 million of common stock.
Director Todd Owens acquired 15,000 shares of Fifth Street Asset Management Inc (NASDAQ:FSAM) at an average price of $9.79 per share. In addition, Owens made a purchase of 100,000 of the company in November at an average price of $17.00. In November, Director C Frank Meyer purchased 61,000 shares of Fifth Street Asset Management Inc (NASDAQ:FSAM) at $17.00 apiece.
Fifth Street Senior Floating Rate Corp. (NASDAQ:FSFR) is a specialty finance company that lends to small and mid-sized companies in connection with an investment by private equity sponsors. Aside from Pine River Capital Management, Balestra, managed by James Melcher, owns 380,948 shares of the company, and Dialectic Capital Management, led by John Fichthorn, holds 107,500 shares of the company, as of the end of the third quarter.
Ken Griffin’s Citadel Investment Group holds 2.53 shares of Fifth Street Finance Corp. (NASDAQ:FSC) as of the end of the third quarter. Greenlight Capital, led by David Einhorn, reported ownership of around 1.10 million shares of the company.
Disclosure: none
