Steven Tananbaum’s GoldenTree Asset Management Raises Stake in FairPoint Communications Inc (FRP)

GoldenTree Asset Management, a hedge fund led by Steven Tananbaum, revealed boosting its exposure to FairPoint Communications Inc (NASDAQ:FRP). In a new filing with the Securities and Exchange Commission, GoldenTree revealed owneship of around 1.42 million shares of the company, which are equal to 5.33% of the outstanding common stock. In its latest 13F filing, the fund disclosed ownership of 389,000 shares.

FairPoint Communications Inc (NASDAQ:FRP) provides communication services focused on rural and small towns. The company offers various services such as high-speed Internet access, voice, television and broandband products. The company has a market cap of $430 million and its stock returned more than 40% year-to-date. The company posted a decrease in revenue for the second quarter to $225.6 million, from around $234.5 million reported as for the same period last year. Moreover, its net loss narrowed to $22.7 million, from $43.1 million a year ago.

The analysts so far suggest holding the stock FairPoint Communications Inc (NASDAQ:FRP), while the average target price stands at $13.80, which is below the current price of the company.

Aside from GoldenTree Asset Management, another shareholder of FairPoint Communications Inc (NASDAQ:FRP) is John M. Angelo and Michael L. Gordon‘s Angelo Gordon & Co, which revealed holding some 5.13 million shares in its latest 13F filing. Archer Capital Management, led by Eric Edidin and Josh Lobel, is another shareholder, which decreased its stake by 10% during the second quarter to 1.90 million shares held as of the end of June.

GoldenTree was founded in 2000 and is a fund focused on credit markets, but also manages an equity portfolio worth around $460 million. Its equity portfolio is diversified, but is primarily invested in the financial and services sectors.

Disclosure: none