Luxor Capital Is Enticed By Northstar Realty Finance Corp (NRF)’s Over 10% Yield and Cheap Valuation

Among Northstar Realty Finance Corp (NYSE:NRF)’s latest ventures is the definitive agreement that it signed to acquire one of Frankfurt’s tallest skyscrapers, Trianon office tower, from Madison International Realty LLC and a fund managed by Morgan Stanley for $611 million. The company’s Europe unit, which is in the process of being spunoff, recently priced a $300 million private note offering with a 4.625% interest attached to them, which are due in December 2016.

Among the hedge funds that we track, the interest in the company rose during the first quarter as smart money found the entry point in Northstar Realty Finance Corp (NYSE:NRF) to be enticing. A total of 72 funds had invested $2.47 billion in the company at the end of March as compared with 67 firms with $1.75 billion in shares at the end of the previous quarter. Aside from Luxor, Robert Pitts‘ Steadfast Capital Management and Phil Gross and Robert Atchinson’s Adage Capital Management are the two largest stockholders of Northstar Realty Finance Corp (NYSE:NRF) within our database with holdings of 15.81 million shares valued at $286.54 million and 13.18 million shares valued at $238.83 million respectively. Other prominent investors of the company include Israel Englander’s Millennium Management and Ken Griffin‘s renowned managed futures fund, Citadel Investment Group.

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