A Look At Whitebox Advisors Top Equity Holdings As It Prepares To Close Down Its Mutual Fund Unit

#4 Ocwen Financial Corp (NYSE:OCN)

– Shares Owned by Whitebox Advisors (as of September 30): 792,500

– Value of Holding (as of September 30): $114.9 Million

Shares of mortgage services provider Ocwen Financial Corp (NYSE:OCN) weren’t able to recover from the slump registered in January, 2014, and ended the last year down by over 50%. During the third quarter, the stock fell severely after the company reported dismal second quarter earnings, causing it to end the quarter down by 34.2%. However, Whitebox Advisors displayed its conviction on the company by increasing its stake in it by 61% during the same period.

The company is expected to report its fourth-quarter results later this month and analysts expect a loss of $0.34 per share, significantly narrower than the loss of $1.42 it reported for the same quarter a year earlier. On December 12, analysts at Piper Jaffray resumed their coverage on Ocwen Financial Corp (NYSE:OCN)’s stock by downgrading it to ‘Neutral’ from ‘Overweight’ and also slashing their price target on it to $6.50 from $12, which represents a potential downside of 4.5% from the stock’s current trading price.

Apart from Whitebox Advisors, Jonathon Jacobson‘s Highfields Capital Management also increased its stake in Ocwen Financial Corp (NYSE:OCN) during the third quarter (by 10%); it held 4.7 million shares of the company, as of September 30.