Top 10 Holdings of Engaged Capital

8. PRA Group, Inc. (NASDAQ:PRAA)

Engaged Capital’s Equity Stakes: $48.33 Million

Number of Hedge Fund Holders: 7

PRA Group, Inc. (NASDAQ:PRAA) is a financial and business services company that purchases, collects, and manages non-performing loans worldwide. It remains one of the top 10 holdings of Engaged Capital, offering investment exposure in the financial service sector.

Engaged Capital amassed a 5% stake in the debt collection company last year and made clear its plans to push for operational improvement. The hedge fund instigated an activist campaign pushing for cost cuts and adding new experiences in the senior leadership.

Engaged has been advocating for selecting a president or chief operating officer who could assist in managing transformations, including a stricter business strategy. This involves enhancing its collection methods by increasing automation, technology use, and outsourcing. Given a possible rise in loan defaults, as interest rates stay high following central banks’ forceful increases, Engaged believes that enhancing the PRA Group, Inc. (NASDAQ:PRAA)’s operations now would enable it to take advantage of favorable market conditions, the sources noted.

Among the 920 hedge funds tracked by Insider Monkey’s database, seven had acquired and held PRA Group, Inc. (NASDAQ:PRAA) shares.