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.

Michael Weinstock’s Monarch Alternative Capital Ups Activist Stake in This Stock

Monarch Alternative Capital, led by Michael Weinstock, has raised its exposure to Star Bulk Carriers Corp. (NASDAQ:SBLK). In a newly-amended filing with the U.S. Securities and Exchange Commission, Monarch Alternative Capital disclosed that it holds 9.61 million Star Bulk Carriers shares, up from the 6.16 million shares the hedge fund had held since June, 2014. The new stake is equivalent to 6.07% of the company’s outstanding common stock.

Founded in 2002, Monarch Alternative Capital is an investment firm that focuses on distressed and bankruptcy situations. The hedge fund has developed a research-oriented approach and event-driven investment strategy, and has more than $5.0 billion in assets under management. Monarch Alternative Capital’s equity portfolio is valued at $439 million. The fund held its largest equity positions in YPF SA (ADR) (NYSE:YPF), Scorpio Bulkers Inc (NYSE:SALT), and Star Bulk Carriers Corp. (NASDAQ:SBLK), as of the end of the third quarter of 2014.

Michael Weinstock - Monarch Alternative Capital

During that quarter, the fund upped its stake in YPF SA to 2.53 million shares. In Scorpio Bulkers, the fund disclosed ownership of 12.19 million shares, representing a 38% increase from the end of the previous quarter. Last month, Monarch Alternative Capital disclosed upping its position in Scorpio Bulkers to around 20.66 million shares, their passive stake representing 11.5% of the company’s common stock.

Star Bulk Carriers Corp. (NASDAQ:SBLK) is a global shipping company that provides worldwide seaborne transportation solutions in the dry bulk sector. The company has a fleet of 103 vessels, with an aggregate capacity of 11.9 million dwt (deadweight tonnage). Headquartered in Athens, Greece, the company transports a wide range of dry bulk commodities, such as coal, iron ore, grains, and minor bulks, as well as bauxite, phosphate, fertilizers, and steel products.

Star Bulk Carriers Corp. (NASDAQ:SBLK) has a market cap of more than $700 million. The share price of the company has dropped by over 29% year-to-date, and over 50% during the past three months. Analysts have a consensus average target price of $10.34 for the stock, which will open trading on Tuesday morning at just $4.64. The consensus average analyst recommendation for the stock is ‘overweight’, meaning it is expected to outperform its industry peers over the next 12 months.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.