Ocwen Financial Corp (OCN): Kingstown Capital Management Lowers Stake

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A newly-amended 13D filing with the Securities and Exchange Commission revealed that Michael Blitzer‘s Kingstown Capital Management has lowered its stake in Ocwen Financial Corp (NYSE:OCN) to 9.5 million shares, which represent 7.66% of the company’s outstanding stock. Previously, Kingstown Capital Management’s stake consisted of 11.35 million shares, according to its 13F filing for the end of June reporting period.

Ocwen Financial Corporation is a financial services holding company that provides professional residential and commercial mortgage loan servicing. Over the past 12 months, the company’s stock has lost 55.84%. In its latest financial report, Ocwen Financial disclosed a loss per share of $0.71, widely missing the estimates of a loss per share of $0.48, while revenue of $373.05 million easily bested the estimates of $324.05 million. Recently, Piper Jaffray lowered its price target on Ocwen to $2 from $2.50 and has a ‘Neutral’ rating on the stock.

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The number of hedge funds in our database with positions in Ocwen Financial Corp (NYSE:OCN) decreased to 16 as of the end of June, from 19 at the end of March. Some of the bullish investors of the company include Michael Hintze’s CQS Cayman LP, which held a position valued at $2.29 million on June 30, Michael Kao’s Akanthos Capital, with a $2.22 million position, Youlia Miteva’s Proxima Capital Management, Thomas G. Maheras’ Tegean Capital Management, and Andy Redleaf’s Whitebox Advisors.

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Among investors who dumped Ocwen Financial Corp (NYSE:OCN) during the second quarter were John Khoury’s Long Pond Capital, which said goodbye to a $2.35 million position, and George Hall’s Clinton Group, which dropped its $336,000 stake in the stock.

You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
KINGSTOWN PARTNERS MASTER LTD 6,094,785 6,094,785 6,094,785 4.92%
KINGSTOWN PARTNERS II 1,600,895 1,600,895 1,600,895 1.29%
KTOWN 1,804,320 1,804,320 1,804,320 1.46%
KINGSTOWN CAPITAL PARTNERS 3,405,215 3,405,215 3,405,215 2.75%
KINGSTOWN CAPITAL MANAGEMENT 9,500,000 9,500,000 9,500,000 7.66%
KINGSTOWN MANAGEMENT GP 9,500,000 9,500,000 9,500,000 7.66%
MICHAEL BLITZER 9,500,000 9,500,000 9,500,000 7.66%
GUY SHANON 9,500,000 9,500,000 9,500,000 7.66%

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Page 1 of 14 – SEC Filing

Washington, D.C. 20549
(Rule 13d-101)
§ 240.13d-2(a)
(Amendment No. 3)1
Ocwen Financial Corporation
(Name of Issuer)
Common Stock, $0.01 par value
(Title of Class of Securities)
(CUSIP Number)
1325 Avenue of the Americas
New York, New York 10019
(212) 451-2300

(Name, Address and Telephone Number of Person

Authorized to Receive Notices and Communications)
August 31, 2016
(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box ¨.
Note:  Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits.  See § 240.13d-7 for other parties to whom copies are to be sent.
1              The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

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