In this article, we discuss the top 5 stock picks of Mark Gallogly’s Centerbridge Partners. If you want to read our detailed analysis of Gallogly’s investment philosophy and performance, go directly to the Top 10 Stock Picks of Mark Gallogly’s Centerbridge Partners.
5. INDUS Realty Trust, Inc. (NASDAQ:INDT)
Centerbridge Partners’ Stake Value: $99,200,000
Percentage of Centerbridge Partners’ 13F Portfolio: 6.33%
Number of Hedge Fund Holders: 10
INDUS Realty Trust, Inc. (NASDAQ:INDT), a real estate investment trust, is one of the top stocks to buy according to Mark Gallogly’s Centerbridge Partners. The fund elevated its position in INDUS Realty Trust, Inc. (NASDAQ:INDT) by 39% to build a $99.2 million stake in the company. INDUS Realty Trust, Inc. (NASDAQ:INDT) has 41 structures totaling about 4.6 million square feet in Connecticut, North Carolina, Pennsylvania, and Florida, in addition to more than 3,400 acres of undeveloped property.
On May 23, Colliers initiated coverage of INDUS Realty Trust, Inc. (NASDAQ:INDT), assigning the company a ‘Neutral’ rating and $70 price objective. INDUS Realty Trust, Inc. received little attention from smart investors in the first quarter of 2022. According to Insider Monkey’s quarterly filings data, 10 funds were bullish on INDUS Realty Trust, Inc. (NASDAQ:INDT), down from 13 in the fourth quarter of 2021.
In its Q4 2021 investor letter, Clark Street Value, an investment management firm, mentioned INDUS Realty Trust, Inc. (NASDAQ:INDT). Here is what the fund said:
“INDUS Realty Trust (INDT) will similarly just be in my tuck it away and forget about it pile for now, it is a logistics/warehouse REIT that has recruited much of the old Gramercy Property Trust (GPT) team, with the former CFO, Jon Clark, taking over at year end to round out things out. The tailwinds are pretty clear, and with a relatively small asset base and experienced team, they can be “sharp shooters” as they describe it, pick and choose smaller deals the likes of Blackstone can’t be bothered with to assemble a portfolio.”
4. Genco Shipping & Trading Limited (NYSE:GNK)
Centerbridge Partners’ Stake Value: $107,815,000
Percentage of Centerbridge Partners’ 13F Portfolio: 6.88%
Number of Hedge Fund Holders: 19
Genco Shipping & Trading Limited (NYSE:GNK) is a global ship owner which transports dry bulk commodities such as iron ore, coal, grain, and steel goods. As of December 31, 2021, the firm’s fleet comprised 44 dry bulk carriers with a total capacity of about 4.64 million deadweight tonnes. Genco Shipping & Trading Limited (NYSE:GNK) is a fantastic investment for income seekers because of its 17% dividend yield.
Genco Shipping & Trading Limited (NYSE:GNK) reported strong financials for the second quarter of 2022 on August 3, revealing revenue of $138 million, up 13.9% year-over-year. In addition, the company’s earnings per share for the second quarter were $1.10, compared to $0.75 a year earlier. On August 3, Alliance Global Partners analyst C. K. Poe Fratt initiated coverage of Genco Shipping & Trading Limited (NYSE:GNK), rating the stock a ‘Buy’, with a price target of $29.
Centerbridge Partners holds more than 4.56 million shares of Genco Shipping & Trading Limited (NYSE:GNK), worth nearly $108 million, representing 6.88% of the fund’s portfolio exposure. In the first quarter of 2022, 19 hedge funds tracked by the database of Insider Monkey were long Genco Shipping & Trading Limited (NYSE:GNK), down from 20 in the preceding quarter. Bailard Inc is a prominent stakeholder of Genco Shipping & Trading Limited (NYSE:GNK), with 17,000 shares worth $328,000.
3. Radius Global Infrastructure, Inc. (NASDAQ:RADI)
Centerbridge Partners’ Stake Value: $156,009,000
Percentage of Centerbridge Partners’ 13F Portfolio: 9.95%
Number of Hedge Fund Holders: 21
Radius Global Infrastructure, Inc. (NASDAQ:RADI) purchases, owns, and rents land, fiber, and data center assets to tower companies and other parties. In the U.S and 19 other nations, it owns interests in 8,506 leases placed on 8,186 communications sites. Mark T. Gallogly’s Centerbridge Partners is Radius Global Infrastructure, Inc. (NASDAQ:RADI)’s largest investor, holding a $156 million stake of 10.9 million shares.
On May 10, Raymond James analyst Ric Prentiss maintained a ‘Strong Buy’ rating on Radius Global Infrastructure, Inc. (NASDAQ:RADI) and increased his price target to $22 from $18. For the first quarter of 2022, Insider Monkey conducted an in-depth analysis of 912 hedge funds’ portfolios. Consequently, we discovered that 21 funds had invested in Radius Global Infrastructure, Inc. (NASDAQ:RADI).
2. Cedar Fair, L.P. (NYSE:FUN)
Centerbridge Partners’ Stake Value: $162,509,000
Percentage of Centerbridge Partners’ 13F Portfolio: 10.37%
Number of Hedge Fund Holders: 12
Cedar Fair, L.P. (NYSE:FUN) is a regional amusement park operator. The company’s portfolio has 13 properties, including 11 theme parks, four independently guarded outdoor water parks, resort lodging with more than 2,300 rooms, and more than 600 luxurious RV sites. According to Insider Monkey’s first quarter data, 12 hedge funds were bullish on Cedar Fair, L.P. (NYSE:FUN).
On August 3, Cedar Fair, L.P. (NYSE: FUN) announced its earnings for the second quarter, which included revenue of $509 million, which demonstrates a year-over-year increase of 127%. In addition, EPS was reported to be $0.89, which missed estimates by $0.51.
Subsequently, on August 4, Truist analyst Michael Swartz maintained a ‘Buy’ rating on Cedar Fair, L.P. (NYSE:FUN), while reducing his price target to $58 from $67. The analyst claimed that even though Cedar Fair, L.P. (NYSE: FUN)’s Q2 profitability fell short of projections, the underlying price and visitation information seemed to point to a healthy demand environment.
Centerbridge Partners initially bought Cedar Fair, L.P. (NYSE:FUN) in the third quarter of 2021. The hedge fund boosted its Cedar Fair, L.P. (NYSE:FUN) stake by 34% in the first quarter of 2022, purchasing an additional 742,695 shares. As a result, Cedar Fair, L.P. (NYSE:FUN) accounted for 10.37% of the hedge fund’s equity portfolio value at the end of Q1.
1. Garrett Motion Inc. (NASDAQ:GTX)
Centerbridge Partners’ Stake Value: $547,534,000
Percentage of Centerbridge Partners’ 13F Portfolio: 34.94%
Number of Hedge Fund Holders: 20
Garrett Motion Inc. (NASDAQ:GTX) and its subsidiaries develop, manufacture, and sell electric-boosting and turbocharger technologies all over the world. Regulatory filings show that Centerbridge Partners owned more than 66.21 million shares of Garrett Motion Inc. (NASDAQ:GTX) at the end of March worth $548 million, which represented a hefty 34.9% of its portfolio exposure, nearly 250% more than the next largest holding.
On July 28, Garrett Motion Inc. (NASDAQ:GTX) published its financial results for the second quarter, announcing earnings per share of $0.15, missing estimates by $0.09. In addition, its $859 million in revenue for the period was down 8.1% year-over-year and below estimates by $21 million.
Among the hedge funds tracked by Insider Monkey, Oaktree Capital Management is a leading shareholder of Garrett Motion Inc. (NASDAQ:GTX), with 68.9 million shares worth more than $569 million. At the end of the first quarter, 20 hedge funds held stakes in Garrett Motion Inc. (NASDAQ:GTX), an increase from 19 funds in the preceding quarter.
In its Q2 2022 investor letter, Alluvial Capital Management, an asset management firm, mentioned Garrett Motion Inc. (NASDAQ:GTX). Here is what the fund said:
“Garrett Motion is an exercise in patience. Just as it seemed the global automotive market was about to recover to pre-COVID production, along came Russia, inflation, and the threat of recession. Still, the company is making great strides in improving and simplifying its balance sheet. In June, the company redeemed the rest of the Series B preferred shares it issued to Honeywell when it exited bankruptcy in 2021. With the Series Bs out of the way, Garrett Motion is free to dedicate its cash flow to continued deleveraging or share buybacks. At some point in the next year or two, the conditions will be met for Garrett Motion to convert these preferreds and simplify their capital structure. If the market stubbornly refuses to value Garrett Motion shares at a reasonable price, I believe the company will pursue a sale or merger. Until then, our preferred shares will continue to accrue dividends at an attractive yield. The preferreds are worth at least $15 today, and possibly $20 or more if the company can reduce leverage and/or buy back shares and the automotive market recovers.”
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