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Capital Product Partners L.P. (CPLP): Oaktree Capital Management Ups Stake To 5.7%

Oaktree Capital Management, managed by Howard Marks, has raised its exposure to Capital Product Partners L.P. (NASDAQ:CPLP). A new filing with the U.S. Securities and Exchange Commission showed that Oaktree Capital holds 6.09 million common units representing limited partnership interests of Capital Product Partners L.P. (NASDAQ:CPLP), equal to 5.7% of the company. The stake is passive by nature. Oaktree Capital Management reported owning 275,000 shares of the company in its latest 13F. In February 2014, the fund disclosed ownership of around 5.04 million shares of Capital Product Partners L.P. (NASDAQ:CPLP).


Howard Marks in 1995 co-founded Oaktree Capital Management, which is located in Los Angeles, California. The fund focuses primarily on alternative investments, as well as maintains an emphasis on distressed debt, corporate debt and convertible securities. It looks for companies that are less known by major investors and other funds, and are generally considered contrarian investments. Oaktree Capital manages roughly $78 billion in investment capital for various pension funds, foundations and endowments. Prior to founding and taking on a leading role in Oaktree Capital Management, Mr. Marks was employed by TCW Group, where he worked for 10 years. He was responsible for investments in areas such as distressed debt and high yield bonds. Oaktree Capital Management’s equity portfolio is valued at around $6 billion. As of the end of September 30, 2014, the fund held largest positions in Star Bulk Carriers Corp. (NASDAQ:SBLK), Dynegy Inc. (NYSE:DYN), and First Bancorp (NYSE:FBP).

Last week, Oaktree Capital Management revealed a new position in Century Communities, Inc (NYSE:CCS), which first went public last summer. In a new filing with the SEC, the fund reported owning 1.28 million shares of the company, the passive stake represents 5.9% of the class. In addition, Oaktree Capital Management disclosed a new position in Banc of California Inc (NYSE:BANC) at the end of January. The fund revealed owning 3.2 million shares of Banc of California Inc (NYSE:BANC), representing 9.9% of the company’s outstanding stock. Oaktree Capital Management seems to be a big fan of Star Bulk Carriers Corp (NASDAQ:SBLK), in which the fund boosted its stake by more than 30.9 million shares, or 60%. Last month, in a filing with the SEC, Oaktree Capital Management reported holding 82.1 million common shares of Star Bulk Carriers Corp (NASDAQ:SBLK), representing 51.9% of the company’s outstanding stock.

Capital Product Partners L.P. (NASDAQ:CPLP) is an international shipping company engaged in the seaborne transportation of a wide range of cargoes, including crude oil, refined oil products, such as gasoline, diesel, fuel oil, among others. The company has a market cap of $1.1 billion, and pays an annual dividend of $0.92, on a yield of 10.25. For its fourth quarter ended December 31, 2014, the company posted net income of $13.7 million, which represents a significant increase $2 million in the same quarter in 2013. The company’s net income for the fourth quarter of 2013 included a $7.1 million loss from the sale of the M/T Agamemnon II and a $0.6 million loss related to the settlement of the company’s claims against Overseas Shipholding Group Inc. and certain of its subsidiaries in connection with their voluntary filing for relief under Chapter 11 of the U.S. Bankruptcy Code. The company reported fourth-quarter revenues of $49.7 million, compared to $47.0 million in 2013. On a full-year basis, the company’s net income was $44 million, down from $99.5 million in 2013. Revenues for 2014 were $192.8 million, up from $171.5 million in 2013.

Other largest shareholders of Capital Product Partners L.P. (NASDAQ:CPLP) include Two Sigma Advisors, led by John Overdeck and David Siegel, which held 1.04 million shares of the company as of the end of September 2014. Jim Simons’ Renaissance Technologies, in its latest 13F filing, revealed holding 184,373 shares of the company.

On Monday, shares of Capital Product Partners L.P. (NASDAQ:CPLP) are trading down by 0.98% to $9.07. The stock has a 52 week high of $11.63, and a 52 week low of $6.54. The consensus average target price for the stock is $11.94, while the consensus average recommendation ‘Overweight,’ based on ratings of 10 analysts. During last one year, the company’s stock dropped by 9.39%. It fell 16.87% in last six months.

Disclosure: none

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