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Blue Mountain Capital Discloses Stake In Post-IPO Gener8 Maritime Inc (GNRT)

In a recent Form 3 filing with the Securities and Exchange Commission, Blue Mountain Capital has disclosed the ownership of 7.84 million shares of Gener8 Maritime Inc (NYSE:GNRT), a provider of seaborne oil transportation services. The company went public on June 25th in an Initial Public Offering (IPO) priced at $14, although the initial pricing was in the range of $17-19 per share. Blue Mountain Capital, managed by Andrew Feldstein and Stephen Siderow, had invested in the company prior to its IPO in a private placement of 1.08 million shares in exchange for $28.9 million. Howard Marks‘ Oaktree Capital Management and Marc Lasry‘s Avenue Capital are among the hedge funds we track that also had held significant positions in Gener8 Maritime Inc (NYSE:GNRT) before it went public.

Andrew Feldstein and Stephen Siderow

We don’t just track the latest moves of hedge funds. We are, in fact, more interested in their 13F filings, which we use to determine the top 15 small-cap stocks held by the funds we track. We gather and share this information based on 16 years of research which showed that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in backtests, and easily beating the most popular large-cap picks of funds, which nonetheless get the majority of their collective capital. Why pay fees to invest in both the best and worst ideas of a particular hedge fund when you can simply mimic only the very best ideas of the best fund managers on your own? Since the beginning of forward testing in August 2012, the Insider Monkey small-cap strategy has outperformed the market every year, returning 135%, nearly 2.5 times greater returns than the S&P 500 during the same period (see more details).

Gener8 Maritime Inc (NYSE:GNRT) initial plan was to raise $246 million from its IPO but had to settle for less. 15 million shares were offered, with options for the acquisition of an additional 1.88 million shares at the initial public offering price of $14, which were exercised in full. Having raised $236 million before expenses, the company will seek to repay a portion of its debt and for further development of core business. The company’s fleet comprises 46 tankers, 21 of which are still in the construction process and are to be delivered between August 2015 and February 2017. This addition is estimated to more than double the company’s capacity. Gener8 Maritime Inc (NYSE:GNRT) has registered revenues of 392 million for the 2014 fiscal year and 356 million for 2013, however net losses amounted to 47 million in 2014 and 101 million the year before. As of March 31, 2015, the company has cash and cash equivalents of 163 million, while total assets amount to 1.39 billion. Gener8 Maritime debt currently lies at 845 million, this figure being simply explained by the company’s 1.4 billion investment in the new 21 vessels mentioned above. According to a recent communique, Gener8 Maritime Inc (NYSE:GNRT) is to announce second quarter results on August 4, after the market close.

Andrew Feldstein And Stephen Siderow
Andrew Feldstein And Stephen Siderow
Blue Mountain Capital

With a well diversified portfolio, Blue Mountain Capital has only a small portion of capital invested in Transportation stocks. The biggest chunk is occupied by financial, healthcare and consumer discretionary stocks. According to its latest 13F report, Blue Mountain’s main holdings are Mylan NV (NASDAQ:MYL), with 58 million shares, up 5% during Q1 of 2015, Fiat Chrysler Automobiles NV (NYSE:FCAU), with 1.5 million shares being added during the first quarter of 2015, and Valeant Pharmaceuticals Intl Inc (NYSE:VRX) with just under 1 million shares, a position increased by 356% during the quarter. In a recent move, Andrew Feldstein and Stephen Siderow have reduced their fund’s exposure to AR Capital Acquisition Corp (NASDAQ:AUMA) from 1.81 million to 1.35 million shares, which account for 4.5% of the company’s common stock.

Disclosure: none.

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