5 Stocks to Buy According to Mark T. Gallogly’s Centerbridge Partners

In this article, we discuss 5 stocks to buy according to Mark T. Gallogly’s Centerbridge Partners. If you want to read our detailed analysis of Gallogly’s investment philosophy and portfolio construction, go directly to 10 Stocks to Buy According to Mark T. Gallogly’s Centerbridge Partners.

5. Genco Shipping & Trading Limited (NYSE:GNK)

Centerbridge Partners’ Stake Value: $88,188,000
Percentage of Centerbridge Partners’ 13F Portfolio: 7.79%
Number of Hedge Fund Holders: 16

Genco Shipping & Trading Limited (NYSE:GNK), a 626.19 million market cap marine shipping company which transports dry bulk goods by ocean throughout the world, was another of Centerbridge Partners’ top picks. Genco Shipping & Trading Limited (NYSE:GNK) shares have returned 10.40% to investors over the course of the past twelve months as of November 8.

B. Riley analyst Liam Burke cautioned investors in a research note that the dry bulk market was suffering due to the uncertainty brought on by China lockdowns and the emergence of economic stimulus, and as a result, on October 10, the analyst maintained a ‘Buy’ rating on the shares while decreasing his price objective on Genco Shipping & Trading Limited (NYSE:GNK) to $27 from $31.

Centerbridge Partners added Genco Shipping & Trading Limited (NYSE:GNK) to its portfolio in the third quarter of 2016 by buying 2.28 million shares. In the second quarter of 2022, the hedge fund owned more than 4.56 million shares in Genco Shipping & Trading Limited (NYSE:GNK) worth $88.19 million. This represented 7.79% of the investment portfolio of Centerbridge Partners.

Genco Shipping & Trading Limited (NYSE:GNK)’s notable investor is Thomas Bailard’s Bailard Inc, with 17,000 shares worth $213,000. During the second quarter of 2022, a poll of 895 hedge funds conducted by Insider Monkey revealed that 16 had held a stake in Genco Shipping & Trading Limited (NYSE:GNK), down from 19 in the preceding quarter.

4. INDUS Realty Trust, Inc. (NASDAQ:INDT)

Centerbridge Partners’ Stake Value: $89,778,000
Percentage of Centerbridge Partners’ 13F Portfolio: 7.93%
Number of Hedge Fund Holders: 9

INDUS Realty Trust, Inc. (NASDAQ:INDT) is a real estate business that develops, acquires, manages, and leases high-end industrial and logistical buildings. INDUS owns and operates 41 buildings totalling 4.6 million square feet, dispersed across more than 3,400 acres of undeveloped land in Connecticut, Pennsylvania, North Carolina, and Florida.

According to Insider Monkey’s data, INDUS Realty Trust, Inc. (NASDAQ:INDT) was part of 9 hedge fund portfolios at the end of Q2 2022, compared to 10 in the prior quarter. However, Centerbridge Partners elevated its stake in INDUS Realty Trust, Inc. (NASDAQ:INDT) by 12% in the second quarter of 2022. Mark Gallogly’s Centerbridge Partners owns 1.51 million shares of the company, worth over $89.78 million.

On October 17, BTIG analyst Thomas Catherwood retained a ‘Buy’ rating on the shares of INDUS Realty Trust, Inc. (NASDAQ:INDT) while trimming his price objective from $91 to $72. Despite strong fundamentals and a promising near-term outlook, the Industrial sector has lagged behind the entire industry after seven years of outperformance. On a multiple basis, the sector has not traded at these levels since Q1 of 2016, the analyst said in a research note to investors.

Here is what Clark Street Value has to say about INDUS Realty Trust, Inc. (NASDAQ:INDT) in its Q4 2021 investor letter:

“INDUS Realty Trust (INDT) will similarly just be in my tuck it away and forget about it pile for now, it is a logistics/warehouse REIT that has recruited much of the old Gramercy Property Trust (GPT) team, with the former CFO, Jon Clark, taking over at year end to round out things out. The tailwinds are pretty clear, and with a relatively small asset base and experienced team, they can be “sharp shooters” as they describe it, pick and choose smaller deals the likes of Blackstone can’t be bothered with to assemble a portfolio.”

3. Cedar Fair, L.P. (NYSE:FUN)

Centerbridge Partners’ Stake Value: $130,215,000
Percentage of Centerbridge Partners’ 13F Portfolio: 11.51%
Number of Hedge Fund Holders: 12

Cedar Fair, L.P. (NYSE:FUN) manages hotels, amusement parks, and indoor and outdoor water parks. Cedar Fair, L.P. (NYSE:FUN) owns and operates 13 facilities, including 11 theme parks, four independently guarded outdoor water parks, resort lodging with about 2,300 rooms, and more than 600 luxurious RV sites.

On November 2, Cedar Fair, L.P. (NYSE:FUN) published earnings for the third quarter of 2022, announcing earnings per share of $5.86, beating estimates by $2.00. In addition, the $362 million adjusted EBITDA for the period was up $29 million from the third quarter of 2021.

On November 3, B. Riley analyst Eric Wold maintained a ‘Buy’ recommendation on the shares while lowering his price objective for Cedar Fair, L.P. (NYSE:FUN) from $68 to $58. Wold advised investors in a research note that decreased attendance and larger post-pandemic labour limitations, which have not yet been fully leveraged, were the primary causes of Cedar Fair, L.P. (NYSE:FUN)’s adjusted EBITDA coming in severely below projections.

According to Insider Monkey’s Q2 data, 12 hedge funds were bullish on Cedar Fair, L.P. (NYSE:FUN), compared to the same number of funds in the earlier quarter. Centerbridge Partners held 2.97 million shares of Cedar Fair, L.P. (NYSE:FUN) as of the end of the second quarter of 2022, which are worth $130.22 million and represented 11.51% of its portfolio. It is the biggest stakeholder of the company.

2. Radius Global Infrastructure, Inc. (NASDAQ:RADI)

Centerbridge Partners’ Stake Value: $166,716,000
Percentage of Centerbridge Partners’ 13F Portfolio: 14.74%
Number of Hedge Fund Holders: 25

Radius Global Infrastructure, Inc. (NASDAQ:RADI) purchases and leases telecom real estate interests and contractual rights. As of December 31, 2021, Radius Global Infrastructure, Inc. (NASDAQ:RADI) had interests in 8,506 leases with 8,186 communications installations situated in the US and 19 other nations.

On October 4, Raymond James analyst Ric Prentiss reaffirmed a ‘Strong Buy’ recommendation on Radius Global Infrastructure, Inc. (NASDAQ:RADI) while trimming his price target from $21 to $17. Even with FX and interest rate fluctuations, Prentiss believed the share price decline was excessive, especially in light of Radius Global Infrastructure, Inc. (NASDAQ:RADI)’s integrated FX risk hedges.

According to Insider Monkey’s data, 25 hedge funds were long Radius Global Infrastructure, Inc. (NASDAQ:RADI) at the end of June 2022, up from 21 funds in the previous quarter. In addition, Travis Cocke’s Voss Capital is a significant position holder in the company, with 1.44 million shares worth $13.53 million.

Centerbridge Partners held 10.93 million shares in Radius Global Infrastructure, Inc. (NASDAQ:RADI) as of the second quarter of 2022. The hedge fund’s investment in the company accounted for 14.74% of its portfolio in the second quarter, up from 9.95% in the first quarter of 2022.

1. Garrett Motion Inc. (NASDAQ:GTXAP)

Centerbridge Partners’ Stake Value: $544,223,000
Percentage of Centerbridge Partners’ 13F Portfolio: 48.12%
Number of Hedge Fund Holders: 23

Garrett Motion Inc. (NASDAQ:GTXAP) and its subsidiaries develop, manufacture, and distribute turbocharger and electric-boosting technologies to original equipment manufacturers of light and commercial vehicles globally. Garrett Motion Inc. (NASDAQ:GTXAP) shares have offered investors 5.72% in returns over the course of the past twelve months.

Centerbridge Partners added Garrett Motion Inc. (NASDAQ:GTXAP) to its portfolio in the fourth quarter of 2021. In the second quarter of 2022, the hedge fund owned more than 66.21 million shares in the firm that are valued at over $544.22 million, representing 48.12% of the portfolio of the hedge fund.

Chuck Royce’s Royce & Associates held a substantial stake in Garrett Motion Inc. (NASDAQ:GTXAP) at the end of the third quarter of 2022, worth $7.48 million.

Alluvial Capital Management, an investment advisory firm, mentioned Garrett Motion Inc. (NASDAQ:GTXAP) in its Q3 2022 investor letter. Here is what the fund said:

“Garrett Motion Inc. (NASDAQ:GTX) has elected to begin paying cash dividends on its convertible preferred shares. Doing so prevents dividends in arrears from further accruing and is a wise use of the company’s free cash flow. I believe the choice to initiate a cash dividend is a tacit admission by the company that the necessary conditions for converting the preferred shares will not be met soon. This is a mild short-term negative, as the complex capital structure will remain in place for now. On the other hand, I am thrilled for us to earn a 9% yield as the company uses its free cash flow to buy back cheap stock and wait for the automotive cycle to turn.”

You can also take a peek at 8 Stocks to Buy According to Alexander Captain’s Cat Rock Capital and 10 Stocks to Buy According to James Morrow’s Callodine Capital Management

Follow Insider Monkey on Twitter