Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Akanthos Capital Management Betting Big on These Stocks for 2016

Page 1 of 2

Established in 2002, Michael Kao‘s Woodland Hills, California-based Akanthos Capital has about $1.23 billion worth of assets under management. Only a fraction of those assets are invested in the public equity markets, as according to the fund’s latest 13F filing, the market value of its public equity portfolio stands at just $48.54 million, with much of that total being invested in healthcare, finance, and energy stocks. Akanthos’ thematic portfolio construction means that it also invests in securities which have a low correlation with major equity and hedge fund indices. In this article we are going to take a look at the firm’s top equity picks for 2016.

We track prominent investors and hedge funds because our research has shown that historically their stock picks delivered superior risk-adjusted returns. This is especially true in the small-cap space. The 15 most popular small-cap stocks among a select group of investors delivered a monthly alpha of 80 basis points between 1999 and 2012. This means investors would have generated 10 percentage points of alpha per year simply by imitating hedge funds’ top 15 small-cap ideas (see the details here).

Michael Kao
Michael Kao
Akanthos Capital

#5 Ocwen Financial Corp (NYSE:OCN)

 – Shares Owned by Akanthos Capital (as of December 31): 525,000

 – Value of Holding (as of December 31): $3.66 Million

Akanthos Capital slightly decreased its stake in the $690.35 million financial services holding company during the October-to-December period, by 1%. The holding represents about 7.54% of the fund’s equity portfolio. In the last 12 months Ocwen Financial Corp (NYSE:OCN)’s stock price has plunged by a staggering 43.6% while the retail and mortgage banks industry has gained over 13% during the same period. The company has been hit by a number of scandals recently, leading to a restatement of its earnings from the final three quarters of 2013 and the first quarter of 2014. In December, Ocwen reached a $150 million settlement with New York’s Department of Financial Services and just last month it agreed to pay $2 million to settle SEC claims that it relied on valuations from a related party when it came to the company’s mortgage assets. Michael Blitzer‘s Kingstown Capital Management is the largest stockholder of Ocwen Financial Corp (NYSE:OCN) among the investors that we track, as it held 12.5 million shares of the company at the end of the fourth quarter.

 

Follow Ocwen Financial Corp (NYSE:OCN)
Trade (NYSE:OCN) Now!

#4 Brookdale Senior Living, Inc. (NYSE:BKD)

 – Shares Owned by Akanthos Capital (as of December 31): 200,000

 – Value of Holding (as of December 31): $3.69 Million

During the fourth quarter, Akanthos upped its stake in Brookdale Senior Living, Inc. (NYSE:BKD) by 11%. The firm initiated its stake in the $2.11 billion operator of more than 1,100 senior living communities during the second quarter. The company’s stock has cratered by more than 68% during the last year, while the residential & long term care industry has slid by more than 20% on average in the same period. Investors were disappointed by the company’s fourth quarter financial results on account of a lower year-over-year occupancy rate, which was down by 150 basis points to 86.8%. Moreover Brookdale’s Cash From Facility Operations guidance range of $2.45-to-$2.55 for 2016 also fell below analysts’ expectations of $2.62. Glenview Capital, managed by Larry Robbins, held more than 18.14 million shares of Brookdale Senior Living, Inc. (NYSE:BKD) at the end of the fourth quarter.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!