After Kieran Goodwin left King Street Capital Management LP back in 2010, he set on a path to create his own investment firm. The new company, Panning Capital Management LP, filed its first 13F Form on December 31st 2012, disclosing a rather risk prone investment portfolio. The New York-based hedge fund, was to begin trading by betting on, and against, securities from loans to distressed assets.
As the Panning Capital Management’s first year in existence comes to an end, several new positions have been added to its portfolio, while other holdings have been dropped. Nevertheless, the investment strategy seems to be the same, as undervalued stocks are preferred by Goodwin’s company.
Baltic Trading Ltd (NYSE:BALT) is one of the new positions acquired by Panning Capital Management since its creation back in late 2012. Despite owning 625,000 shares of common stock, the total value of the investment barely surpassed the $3 million mark. With such an undervalued stock, Goodwin is certainly looking to make a killer profit, should share prices rise. As the drybulk shipping company is set to receive two more Handysize ships by the end of the third quarter of 2013, new profits can be expected.
Another fresh addition to Panning Capital Management’s portfolio is General Motors Co (NYSE:GM). With more than 1.12 million shares of GM, amounting to a $17.3 million position, the hedge fund’s can expect good returns. This relatively undervalued motor company has been recovering well from the crash it suffered during the financial crisis, and is expected to continue growing.
Southwest Airlines Co (NYSE:LUV) was another interesting addition to Panning Capital Management’s portfolio. The hedge fund was able to acquire 1 million shares of common stock, for the moderate sum of $14.56 million. As the airliner has large expansion plans in already in progress, share value is expected to grow in the long-term. This undervalued stock fits well into the investment firm’s strategy of buying shares of beat down companies, which are now recovering and have a bright future outlook.
The 250,000 shares of The Royal Bank of Scotland Group (NYSE:RBS), which Panning Capital Management purchased at a low price, is yet another investment worth looking at. The bank, which was the recipient of the world’s largest bank bailout package, and is currently owned to 81.14% by the government of the United Kingdom, is set to expand in the long term. As restructuring efforts are underway, Goodwin’s hedge fund remains bullish regarding this stock’s future.