John Levin Explains to New Senior Investment Group Inc (SNR)’s Board Why the Stock Is Slumping

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According to a recent filing with the Securities and Exchange Commission Levin Capital Strategies, which is managed by John A. Levin, has further trimmed its stake in New Senior Investment Group Inc (NYSE:SNR) to 4.48 million shares from 4.51 million shares. The stake, which is held together with affiliated entities, amasses about 5.18% of the company’s outstanding stock. Out of these, 680,618 shares grant Levin Capital sole voting power while about 3.27 million shares represent shared voting power. Additionally, Levin Capital has also entered into swap contracts involving 137,263 shares of New Senior Investment Group with an affiliate of JP Morgan. Accompanying this new development is the letter that Levin recently has sent to New Senior Investment Group Inc (NYSE:SNR)’s management in connection with the company’s slumping stock price which he believes is rooted in the external management by Fortress.

John Levin Levin Capital

Levin served as President of the BKF Capital Group before he established the New York City-based Levin Capital Strategies in 2005. Most of the fund’s picks are large-cap companies that satisfy the fund’s bottom-up approach. Currently, the value of Levin Capital’s public equity portfolio stands at $6.76 billion, with 17% of the holdings belonging to the finance sector, one of which is New Senior Investment Group Inc (NYSE:SNR).

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In his letter to New Senior Investment Group Inc (NYSE:SNR), Levin highlighted the more than 50% drop in the company’s stock price since its spinoff from Newcastle Investment Corp. (NYSE:NCT) in October 2014. This slump has come despite an impressive performance by CEO Susan Givens, who managed to increase occupancy rates at the company’s properties and also considerably grow its Funds from Operations (FFO).

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