Brian Taylor’s Pine River Capital reported 2,432,837 shares in Walter Investment Management Corp (WAC) on October 20th, representing an 8.7% passive stake. According to the firm’s 13F filing, in the second quarter Pine River Capital had 715 thousand shares in WAC, or 2.56% stake ownership. So this is a 340% expansion in its position. WAC has a comparatively strong path in the third quarter. The stock showed positive recoveries against economic events and has returned nearly 40% year to date. Since WAC’s daily trading volume is usually below 200K, Pine River Capital might entered in late September at about $23. Now WAC is trading at $24.80, and Pine River Capital may have already gained 8% from the transaction.
Except Pine River Capital, in the second quarter ten other hedge funds in our list reported shares in WAC, and several of them adjusted their positions like crazy. Sigma Capital Management increased its position by 380% to 960 thousand shares. Steven Cohen’s Sac Capital Advisors reported an increase of 369% and possessed 879 thousand shares. Dmitry Balyasny’s Balyasny Asset Management had 277 thousand shares, after a 122% increase.
Pine River Capital was founded in early 2002 by Brian Taylor. Brian began his value trading experience in late 1980s and founded Pine River to pursue opportunities in global relative value trading. He had several former colleagues as his managers. In 2007, Pine River outgrew its headquarters and relocated to Minnetonka, Minnesota. The firm had research and trading offices in London, Hong Kong, San Francisco, New York, and Beijing.
Walter Investment Management Corp is a mortgage servicer and mortgage portfolio owner. The company together with its subsidiaries engages in providing subprime, non-conforming and other residential loans in the southeastern United States. The company operates four subsidiaries: Hanover Capital, Walter Mortgage Company (WMC), Walter Investment Reinsurance Co. (WIRC) and Best Insurors, Inc. (Best). The Company operates as an internally managed, publicly traded real estate investment trust (REIT). In November 2010, the company purchased Marix Servicing LLC, and in July 2011 it acquired GTCS Holdings LLC.