Cruiser Capital Advisors initiated the new position during the fourth quarter of 2018 in Thl Credit Inc. (NASDAQ:TCRD), an externally managed, non-
During the fourth quarter of 2018, the fund decided to decrease its stake in its largest holding, Ashland Global Holdings Inc (NYSE:ASH), a provider of specialty chemical solutions worldwide, by 4%, to 1,507,968 shares worth $107 million. In its letter to Ashland Board of Directors from November 2018, the management team of Cruiser Capital Advisors expressed their concerns regarding the company’s incapability to “maximize value for shareholders and realize the full potential of Ashland.” They suggested that a solution to the company’s operational underperformance is the election of Cruiser’s four nominees for Ashland’s Board of Directors. After two months, the two sides finally reached an agreement. Since this holding occupies 70.44% of the fund’s portfolio, the company’s good performance is vital for the fund. In addition, the company’s stock is currently trading at $78.66 (on February, 15th), at price-to-earnings (PE) ratio of 71.67.
The fund decided to shrink its position in Bgc Partners Inc. (NASDAQ:BGCP) at the end of the fourth quarter, for 4%, that way owning 499,510 of its shares worth $2.58 million. This is one of the largest wholesalers of securities and derivatives in the country, and it is among the top ten largest fund’s holding which occupied 1.69% of its portfolio on December 31st, 2018. Following the spin-off of Newmark Group in November, BGC Partners’ shares evidently dropped in December 2018, by 50.9 %. So, it doesn’t come as a surprise the fund decided to increase its stake in Newmark Group Inc. (NASDAQ:NMRK), a real estate services business, during Q4 2018, by 849% to 302,855 shares worth $2.42 million. At the end of the fourth quarter, this holding occupied 1.59% of the fund’s portfolio. Cruiser Capital Advisors’ management team is fond of both businesses, claiming they are inexpensive and with a tendency to grow in the future. Bgc Partners Inc. (NASDAQ:BGCP) has a market cap of $3.06 billion, and its stock lost 46.31% over the past six months, currently trading at $6.27, while Newmark Group Inc. (NASDAQ:NMRK) stock lost 18.61% over the same period, currently trading at $10.32 with a market cap of $2.60 billion.
The fund completely lost faith when it comes to 21 positions the fund decided to drop during Q4 2018. For instance, the fund said goodbye to its positions in Flotek Industries Inc (NYSE:FTK), and Oaktree Strategic Income Corp (NASDAQ:OCSI) whose 17,000 and 13,625 shares, respectively, were entirely sold.
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This article was originally published at Insider Monkey.
