Monarch Alternative Capital, led by Michael Weinstock, has raised its exposure to Star Bulk Carriers Corp. (NASDAQ:SBLK). In a newly-amended filing with the U.S. Securities and Exchange Commission, Monarch Alternative Capital disclosed that it holds 9.61 million Star Bulk Carriers shares, up from the 6.16 million shares the hedge fund had held since June, 2014. The new stake is equivalent to 6.07% of the company’s outstanding common stock.
Founded in 2002, Monarch Alternative Capital is an investment firm that focuses on distressed and bankruptcy situations. The hedge fund has developed a research-oriented approach and event-driven investment strategy, and has more than $5.0 billion in assets under management. Monarch Alternative Capital’s equity portfolio is valued at $439 million. The fund held its largest equity positions in YPF SA (ADR) (NYSE:YPF), Scorpio Bulkers Inc (NYSE:SALT), and Star Bulk Carriers Corp. (NASDAQ:SBLK), as of the end of the third quarter of 2014.
During that quarter, the fund upped its stake in YPF SA to 2.53 million shares. In Scorpio Bulkers, the fund disclosed ownership of 12.19 million shares, representing a 38% increase from the end of the previous quarter. Last month, Monarch Alternative Capital disclosed upping its position in Scorpio Bulkers to around 20.66 million shares, their passive stake representing 11.5% of the company’s common stock.
Star Bulk Carriers Corp. (NASDAQ:SBLK) is a global shipping company that provides worldwide seaborne transportation solutions in the dry bulk sector. The company has a fleet of 103 vessels, with an aggregate capacity of 11.9 million dwt (deadweight tonnage). Headquartered in Athens, Greece, the company transports a wide range of dry bulk commodities, such as coal, iron ore, grains, and minor bulks, as well as bauxite, phosphate, fertilizers, and steel products.
Star Bulk Carriers Corp. (NASDAQ:SBLK) has a market cap of more than $700 million. The share price of the company has dropped by over 29% year-to-date, and over 50% during the past three months. Analysts have a consensus average target price of $10.34 for the stock, which will open trading on Tuesday morning at just $4.64. The consensus average analyst recommendation for the stock is ‘overweight’, meaning it is expected to outperform its industry peers over the next 12 months.
Last week, Star Bulk Carriers Corp. (NASDAQ:SBLK) announced that it closed its public offering of around 49.0 million common shares. The shares were offered at a price of $5.00 per share. Four of the company’s significant shareholders, acquired a total of 37.25 million of the common shares, according to a news release. Those shareholders are Howard Marks’ Oaktree Capital Management, John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co., Monarch Alternative Capital, and lastly, an entity owned and controlled by affiliates of the family of the company’s Chief Executive Officer, Petros Pappas (“Pappas Shareholders), and his family.
For the nine months ended September 30, 2014, Star Bulk Carriers Corp. (NASDAQ:SBLK) reported a net loss of around $3.7 billion vs. net income of $1.8 billion during the same period in 2013. Per share net loss was $0.08, compared to earnings per share of $0.19 in 2013. Total revenue was $81.73 million, compared to $53.55 million in 2013.
In August 2014, Star Bulk Carriers Corp. (NASDAQ:SBLK) announced that it entered into agreements with Excel Maritime Carriers Ltd. to acquire 34 operating vessels for an aggregate of 29.92 million shares of the company’s common stock, and $288.39 million in cash. Under the agreements, Star Bulk was set to acquire 34 secondhand dry bulk carriers in a series of closings, which are expected to occur on a vessel‐by‐vessel basis, according to a news release.
Last week, Oaktree Capital Management, led by Howard Marks, reported vastly increasing its stake in Star Bulk Carriers Corp (NASDAQ:SBLK), by more than 30.9 million shares, or 60%. The fund now owns 82.1 million common shares, representing 51.9% of the company’s outstanding stock.
During the third quarter, Adams Hill Capital, led by Andrew Schwartz, and Steve Cohen’s Point72 Asset Management added Star Bulk Carriers Corp (NASDAQ:SBLK) to their equity portfolios. Adams Hill Capital disclosed ownership of 860,500 shares of the company, while Point72 Asset Management reported holding 194,100 shares of the company. Another investor, Renaissance Technologies, managed by Jim Simons, revealed owning 107,384 Star Bulk Carriers shares, which represented a more than 50% decrease from the previous quarter.
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