Monarch Alternative Capital Also Inititates a Position in Trade Street Residential Inc (TSRE)

Michael Weinstock’s Monarch Alternative Capital disclosed in a filing that it has initiated a position in Trade Street Residential Inc (NASDAQ:TSRE), by purchasing 8.45 million shares, which represents a 23.25% stake in the company’s common stock.

Trade Street Residential Inc (NASDAQ:TSRE)

 

Monarch Alternative Capital acquired the shares of Trade Street Residential Inc (NASDAQ:TSRE) for investment purposes, intending to participate in the governance of the company. It is expecting to obtain certain stockholder rights that are granted to the Backstop Investor as per the Backstop Investor’s Stockholders Agreement, following which, the fund will obtain the rights of representation on the company’s board, preemptive rights, liquidity rights, consent rights, registration rights and other rights.

Monarch acquisition, comes only a couple of days after Douglas Silverman and Alexander Klabin‘s Senator Investment Group, also disclosed initiating a stake in the company. Their holding currently involves 9.32 million shares, equal to 25.6% of the common stock.

Trade Street Residential Inc (NASDAQ:TSRE) is a real estate investment trust, which stock has posted a significant gain of over 6,000% for the past year. Last week, Trade Street acquired two communities, with first being a 288-unit apartment community located in Wake Forest at a price of $37.2 million and the other being a 330-unit apartment community located in Memphis, Tennessee at $43.8 million. Recently, the company has completed its $150 million recapitalization of an offering of 15.80 million shares at $6.33 per share and $50 million private placement to certain affiliates of Senator Investment Group LP at $6.33 per share.

Recently, various insiders have shown interest in Trade Street Residential Inc (NASDAQ:TSRE)’s shares. Amongst them are directors Lewis Gold, Mack Pridgen and Michael Baumann, who purchased 16,666 shares, 25,483 shares, and 120,766 shares respectively. David Levin, Vice Chairman and President at Trade Street bought 165,528 shares, while Chief Financial Officer Richard Ross also purchased 1,377 shares on the same date.

Of the hedge funds we track, Forward Management, led by J. Alan Reid, Jr., in the latest 13F revealed owning 1.14 million shares. It is followed by Louis Bacon’s Moore Global Investments, with 90,530 shares, worth $630,000.

Michael Weinstock’s Monarch Alternative Capital concentrates mainly in distressed and bankruptcy situations.

The fund had initiated a position in some of the companies in the third quarter of 2013. It bought 1.52 million shares of American International Group Inc (NYSE:AIG), 3.34 milion shares of WCI Communities Inc (NYSE:WCIC) and 3.87 million shares of Star Bulk Carriers Corp. (NASDAQ:SBLK), during the period.

Disclosure: none

Recommended Reading:

Intrepid Capital Management Cuts Exposure to World Wrestling Entertainment, Inc. (WWE); Closes Stake in EPIQ Systems, Inc. (EPIQ)

Pershing Square Buys Into Platform Specialty Products Corporation (PAH)

Soros Trims Exposure to Exar Corporation (EXAR)

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Subscribe

Enter your email:

Delivered by FeedBurner

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!