Resolute Forest Products Stock Loved By Michael Johnston’s Steelhead Partners

Resolute Forest Products stock: Resolute Forest Products Inc (NYSE:RFP) was recently increased in the equity portfolio of Michael Johnston’s Steelhead Partners. The hedge fund disclosed ownership of some 13.1 million shares, the value of the stake amounting to $181.2 million at the current price of company’s stock. Through the acquisition of some additional 51,000 shares, the hedge fund increased its position in Resolute Forest Products to 13.7% of all outstanding shares of common stock.

The Canada-headquarted Resolute’s net loss surged to $43 million in the second quarter of this year, from $17 million reported a year ago. At the same time, the sales of the company declined to $1.1 billion, from last year’s amount of $1.2 billion. The company expects relatively stable market conditions in the pulp segment by the end of the year, however, the market for lumber is in decline, despite a growth in demand, the company said in a statement.

Aside from Steelhead Partners, Fairfax Financial Holdings, managed by Prem Watsa, Francis Chou’s Chou Associates Management and Jon Bauer’s Contrarian Capital are bullish on Resolute Forest Products stock.

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