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

#2 American Capital Ltd. (NASDAQ:ACAS)

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

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

American Capital Ltd. (NASDAQ:ACAS) reported much better than expected third quarter of fiscal 2015 results on November 4, which sent its shares higher during November and helped them to end 2015 down by only 6.32%. While analysts had expected the company to report EPS of $0.25 on revenue of $171.43 million, American Capital Ltd. (NASDAQ:ACAS) reported EPS of $0.40 on revenue of $176 million for the quarter. Perhaps Whitebox advisors was expecting this sort of outperformance from the company and that’s why increased its stake by 40% during the third quarter.

On December 8, the company announced that it has sold its portfolio company ‘ Dynojet Research, Inc.’ to Irving Place Capital and New Value Capital. Shares of American Capital are currently trading at a forward price-to-earnings multiple of 10.72, which is reasonable, but is a little rich when compared to other publicly traded asset management firms. The short-term debt on the company has been increasing consistently for the last four quarters, which might be a cause of concern for its investors going forward.

For the fourth quarter of fiscal 2015, analysts are expecting the company to report EPS of $0.30, an over 40% increase from the EPS of $0.21 that it had declared for the same quarter last year. William C. Martin‘s Raging Capital Management boosted its stake in American Capital by 350% to almost 4.5 million shares during the July-September period.