SAC Capital Advisors Raises Stake in Walter Investment Management Corp (WAC)

According to a new filing with the Securities and Exchange Commission, Steven Cohen and his fund, SAC Capital Advisors, have upped their position in Walter Investment Management Corp (NYSE:WAC) to almost 1.9 million shares, from less than 1.2 million held previously. In this way, the passive stake held by SAC amasses 5.0% of the company’s outstanding common stock.


The move comes on the back of the 2013 financial results disclosed by Walter Investment Management Corp (NYSE:WAC) around a week ago. The company reported a profit of $253.5 million, versus a loss of over $22 million disclosed a year ago. Overall, amid the improvement in the market conditions, the company anticipates an adjusted EBITDS between $650 and $725 million for the current year. Core EPS is expected to amount to $5.25 to $6.25.

The stock of Walter Investment Management Corp (NYSE:WAC) sports a trailing P/E of around 5.0 and has declined by around 21% since the beginning of the year. Moreover, the mean recommendation for WAC is Overweight, while the average target stands at around $38 per share, which is well above the current price.

Aside from SAC Capital, several other hedge funds have been bullish on Walter Investment Management Corp (NYSE:WAC), according to our database. Select Equity Group, led by Robert Joseph Caruso, is one of the most significant investors, which, recently, has upped its stake to some 3.2 million shares, from 2.9 held previously. Birch Run Capital, run by Daniel Beltzman and Gergory Smith, and Brian Taylor’s Pine River Capital Management, also hold notable positions, which amass some 2.8 million and 2.4 million shares respectively.

SAC has been active in the past couple of days, reporting significant raises in its holdings. Of late, the fund upped its stake in Gogo Inc (NASDAQ:GOGO), to 4.55 million shares. In Februrary, the fund disclosed holding 5.0% stakes in ITT Educational Services, Inc. (NYSE:ESI), and DeVry Education Group Inc (NYSE:DV), with both positions significantly boosted.

Disclosure: none

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