In this article, we discuss the 5 stocks to buy now according to Steve Pei’s Gratia Capital. If you want to read our detailed analysis of Pei’s history and hedge fund performance, go directly to the 10 Stocks to Buy Now According to Steve Pei’s Gratia Capital.
5. ATI Physical Therapy, Inc. (NYSE:ATIP)
Gratia Capital’s Stake Value: $4.96 million
Percentage of Gratia Capital’s 13F Portfolio: 4.14%
Number of Hedge Fund Holders: 25
ATI Physical Therapy, Inc. (NYSE:ATIP) is an Illinois-based physical therapy provider in North America. The firm’s rehabilitation services are recognized nationally and it has around 860 locations in the U.S. On November 18, the company announced that it has taken over Excel-R-ation Physical Therapy which strengthens its position in Michigan.
CJS Securities analyst Larry Solow downgraded the rating from Outperform to Market Perform on ATI Physical Therapy, Inc. (NYSE:ATIP) stock with a $6 price target.
As per the database of Insider Monkey that tracks 867 hedge funds, 25 funds held stakes in ATI Physical Therapy, Inc. (NYSE:ATIP) worth $71.58 million in the third quarter.
1 Main Capital mentioned ATI Physical Therapy, Inc. (NYSE:ATIP) in its third-quarter investor letter. Here is what the firm said:
“During the period, we also sold our opportunistic ATIP position soon after our Q2 letter went out, when the company’s results and outlook were significantly lower than expected, without a clear explanation for how the issues would be resolved.
Specifically, it sounds like the company cut into muscle when it took costs out during COVID, alienating its therapist base. In turn, many therapists are departing for other opportunities, leaving ATIP understaffed and unable to keep up with demand. When trying to replace these staff members, ATIP in many cases has had to offer above-market wages due to its poor reputation, meaning that its future revenues will come at lower margins than in the past.
A deteriorating margin would be a problem even for an unleveraged company. Unfortunately, ATIP also has a debt problem it must deal with since EBITDA is so much lower than it was prior to COVID. The most frustrating part of these developments is that the company appears to have purposely delayed disclosing them to investors until immediately after its de-SPAC was completed.
While I am frustrated by the way this investment played out, I can’t change what happens, only what I do about it. So, we exited our entire position at $1.16 per warrant. Today, they trade for less than $0.50 each.”
4. Global Ship Lease, Inc. (NYSE:GSL)
Gratia Capital’s Stake Value: $5.26 million
Percentage of Gratia Capital’s 13F Portfolio: 4.39%
Number of Hedge Fund Holders: 14
Global Ship Lease, Inc. (NYSE:GSL) is a London-based company that is the owner of different sized containerships and rents them out for a long-term period under a fixed rate to companies that ship containers.
On November 22, the board of directors of Global Ship Lease, Inc. (NYSE:GSL) made an announcement regarding increasing the quarterly dividend by 50% to 37.5c per share to be paid to the common shareholders.
Among the hedge funds tracked by Insider Monkey, Texas-based investment advisory firm Nokomis Capital has the biggest stake in Global Ship Lease, Inc. (NYSE:GSL) with 892,460 shares worth $21.16 million, representing 10% of the portfolio.
On November 11, B. Riley analyst Liam Burke maintained a Buy rating on Global Ship Lease, Inc. (NYSE:GSL) stock and raised the price target from $28 to $33, noting the increased cash flow in the first three quarters of 2021 owing to the operations of the company.
3. TPG RE Finance Trust, Inc. (NYSE:TRTX)
Gratia Capital’s Stake Value: $6.44 million
Percentage of Gratia Capital’s 13F Portfolio: 5.37%
Number of Hedge Fund Holders: 12
TPG RE Finance Trust, Inc. (NYSE:TRTX) is a New York-based real estate finance company that creates, acquires, and handles commercial mortgage loans and many other real estate debt instruments.
According to the third quarter filings, Gratia Capital owned 520,600 shares in TPG RE Finance Trust, Inc. (NYSE:TRTX) worth $6.44 million. The fund decreased its activity in the company by 20% in the third quarter.
According to the database of Insider Monkey that tracks 867 hedge funds, 12 funds held stakes in TPG RE Finance Trust, Inc. (NYSE:TRTX) worth $27.91 million at the end of the third quarter.
2. New York Mortgage Trust, Inc. (NASDAQ:NYMT)
Gratia Capital’s Stake Value: $9.3 million
Percentage of Gratia Capital’s 13F Portfolio: 7.76%
Number of Hedge Fund Holders: 15
New York Mortgage Trust, Inc. (NASDAQ:NYMT) is a real estate investment trust that is focused on real estate-related assets via investment, acquirement, management, and financing. The trust deals mostly in real estate mortgages for single-family and multi-family assets.
Among the hedge funds tracked by Insider Monkey, New York-based hedge fund, Two Sigma Advisors LP is the leading shareholder in New York Mortgage Trust, Inc. (NASDAQ:NYMT) with 2,766,800 shares worth $11.78 million, representing 0.03% of the portfolio.
As per the third quarter filings, Gratia Capital owned 2.18 million shares in New York Mortgage Trust, Inc. (NASDAQ:NYMT) worth $9.3 million, representing 7.76% of the portfolio. The fund also increased its activity in the company by 179% in the third quarter of 2021.
1. Navios Maritime Partners L.P. (NYSE:NMM)
Gratia Capital’s Stake Value: $10.79 million
Percentage of Gratia Capital’s 13F Portfolio: 9%
Number of Hedge Fund Holders: 9
Navios Maritime Partners L.P. (NYSE:NMM) is a Monaco-based company that offers sea-borne transportation services for bulk dry cargo. The company is publicly listed as a master limited partnership and has a fleet of impressive dry bulk and container vessels. On October 15, the firm announced the completion of its acquisition of Navios Maritime Acquisition Corporation. Due to the acquisition, the company’s fleet now includes 54 dry bulk vessels, 43 containerships, and 45 tanker vessels.
Navios Maritime Partners L.P. (NYSE:NMM) is the most significant investment in Gratia Capital’s portfolio. In the third quarter of the year, the fund owned 333,656 shares in Navios Maritime Partners L.P. (NYSE:NMM) worth $10.79 million, making up 9% of the portfolio.
You can also take a peek at 15 Pharmaceutical Stocks to Buy According to Peter Kolchinsky’s RA Capital and Top Tech Stock Picks of Amir Mokari’s Emerson Point Capital.
