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.

Private Equity Firm Corsair Capital’s New Activist Position

D.T. Ignacio Jayanti’s Corsair Capital LLC is a private equity firm specializing in special situations and distressed investing. They have a very concentrated portfolio. The firm focuses on banks, financial institutions, financial services companies, asset managers, advisory firms, credit cards and consumer finance companies. Currently the firm has only four stocks in its portfolio. Their largest investment is NewStar Financial (NEWS). They have $100 Million in NEWS at the end of March. The position is unchanged compared to the end of December.

NewStar Financial Inc (NASDAQ:NEWS)

Corsair’s second largest investment is First American Financial (FAF). First American spun off Corelogic (CLGX) on June 1st, 2010. This was probably the reason why Corsair invested in FAF. First American closed at $14.31 on June 2nd and started to decline for the next six trading days. It closed at $12.17 on June 10th. The stock returned 30.8% since then.

On April 11th, Corsair filed a 13D form with the SEC and disclosed a 5+% activist stake in United Community Banks Inc (UCBI). They accumulated most of their position at prices below $2 per share. Currently the stock trades at $2.33.

Tom Brown’s Second Curve and Mark Broach’s Manatuck Hill Partners have positions in NewStar Financial as well. The stock lost about 3% so far this year. Jonathan Jacobson’s Highfields Capital and Mariko Gordon’s Daruma Asset Management have much larger positions in First American. Jonathan Jacobson and Ric Dillon’s Diamond Hill Capital are among the hedge funds with large holdings in CLGX.