MHR Fund Management Initiates Stake in Titan International Inc (TWI)

Mark Rachesky’s MHR Fund Management has disclosed, in a new SEC filing, adding Titan International Inc (NYSE:TWI). The fund reported holds a total of 5.84 million shares, which represent 10.9% of the common stock. Out of the total position, the MHR owns 2.6 million shares of common stock, and the rest is being held under “Call” option. MHR believes that the shares are undervalued and intend to engage with the management in discussions regarding the business and operations of Titan. The fund is yet to detail the changes it expects from the management.

Titan International Inc (NYSE:TWI) manufacturers wheels and tires for earth moving/ construction, agricultural and consumer segments. Among the hedge funds tracked by us, Gregg J. Powers’ Private Capital Management held 1.05 million shares worth $15.36 million at the end of the third quarter. It was followed by Jay Petschek and Steven Major’s Corsair Capital Management with 738,000 shares, valued at $10.81 million and Peter Muller’s Pdt Partners with 129,000 shares worth $1.89 million.

Mark Rachesky is a well known activist investors and has honed his skills while working under Carl Icahn. He manages $3.70 billion in the equity portfolio invested by his hedge fund MHR Fund Management. The fund focuses on Services, Technology, Consumer Goods and Basic Materials sectors. The hedge fund  takes a highly differentiated, control-focused, private equity approach to investing in distressed and undervalued middle-market companies. The investment worth $1.80 billion in 51.26 million shares of Lions Gate Entertainment Corp (NYSE:LGF) represents its largest stake in the equity portfolio. It is followed by a $550.63 million position in Loral Space & Communications Inc (NASDAQ:LORL), which contains 8.13 million shares, and 13.07 million shares, worth $476.90 million, of Navistar International Corp (NYSE:NAV).

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