Oaktree Capital Management, a fund led by Howard Marks, has significantly boosted its stake in EXCO Resources Inc (NYSE:XCO). According to a newly amended filing with the Securities and Exchange Commission, Oaktree currently holds over 45.25 million shares, which represent 16.6% of the company’s stock.
In an earlier form 4, the fund disclosed acquiring around 8.4 million shares of EXCO at a price of $5.0 apiece, the total value of the deal amounting to totaling $41.9 million. Overall, in the past transactions, Oaktree managed to strengthen its exposure to EXCO from some 36.78 million shares held at the end of September 2013.
The securities have been acquired following the rights offering from EXCO Resources Inc. (NYSE:XCO). As a component of the offering, EXCO distributed to common shareholders of record December 19, 2013 one transferable subscription right for every share of common stock. The right offers shareholders to purchase 0.25 of a share.
EXCO Resources Inc. (NYSE:XCO) is an independent oil and natural gas company engaged in the exploration, exploitation, development and production of onshore the United States oil and natural gas properties. The company acquired Eagle Ford in July 2013. Additionally, according to recent guidance from the company, production is expected to decline by 15% in 2014, but growth of 10% is expected in the following year, 2015.
Apart from Oaktree Capital, Wilbur Ross’s Invesco Private Capital holds 31.50 million shares, representing over 14% of the company, followed by Prem Watsa’s Fairfax Financial Holdings. Fairfax held 10.81 million shares worth $72.84 million at the end of the third quarter.
Oaktree Capital Management focuses distressed debt, corporate debts and convertible securities. The hedge fund manages investment capital of several pension funds, foundations and endowments. With more than $5.20 billion in its equity portfolio, the fund has a multi sector focus. The main sectors are Basic Materials, Financial, Healthcare and Technology. Apart from its investment in Exco Resources, the fund has invested $237.67 million in 41.84 million shares of First Bancorp (NYSE:FBP) as well as $233.80 million in 4.78 million shares of Masonite Intl Corp (NYSE:DOOR) at the end of the third quarter.
Earlier, Oaktree Capital Management trimmed its holdings in Star Bulk Carriers Corp. (NASDAQ:SBLK) to 5.7 million shares from 6.1 million shares. The hedge fund had also reduced its holding in its formerly fully-owned company Stock Spirits Group PLC (LON:STCK) to 73.7 million shares from 76.7 million held earlier. The position entitled the fund 36.8% of Stock Spirits voting rights.