Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Insider Trading Report: John Angelo and Michael Gordon’s Big Bet

Angelo Gordon & Co. bought 500 thousand shares of Fairpoint Communications Inc (FRP) on Thursday. The fund’s average price for this large transaction was $10.59. They paid as much as $10.94 for these shares. Last Monday the stock was trading above $16 per share but closed at $9.59 on Tuesday after their earnings announcement. This huge decline prompted other insiders to step in and purchase FRP shares as well.

FairPoint Communications Inc (NASDAQ:FRP)

Today Paul Sunu, FRP’s CEO, disclosed the purchase of 1000 shares at $11.18. Edward Horowitz, a member of the company’s board, purchased 5000 shares at around $10. Paul Sunu also purchased 8000 shares last Thursday at around $10.

Angelo Gordon & Co now has more than 5.1 Million shares in its portfolio, that is nearly 20% of FRP’s outstanding shares. There are other hedge funds betting big on FRP as well. John Paulson’s Paulson & Co. had 2.3 Million shares, Bruce Richards’ Marathon Asset Management had 1.75 Million shares, and Kevin Ulrich’s Anchorage Advisors had 2.28 Million shares at the end of March. These are all new positions because Fairpoint came out of bankruptcy earlier this year. Collectively twelve hedge funds that we are tracking own more than 50% FRP. Marathon Asset Management sold more than 1 Million shares during the last week of March, and sold an additional 300 thousand shares at the beginning of April. However, the stock price was around $17 at the time. Now, it is $11.

Angelo Gordon & Co was founded by John Angelo and Michael Gordon in 1988. This is a private equity firm focusing on distressed investing. They also have hedge fund operations.