Star Bulk Carriers Corp (SBLK): Oaktree Capital Management Acquires Huge Position

The  recent increase in Oaktree Capital Management’s stake in Star Bulk Carriers Corp (NASDAQ:SBLK), coincides with the beginning of a new strategy announced by the shipping firm. The strategy seeks to bolster the company’s balance sheet and improve its liquidity position by selling some of its older vessels. In this sense, the Star Bulk Carriers disclosed a binding agreement it had entered with a non-related third party for the sale of one of the M/V Star Kim. Despite being built in 1994, the vessel had been acquired in August 2014 along with 33 other ships, and was only delivered at the beginning of December.

In addition to Oaktree Capital Management, Star Bulk Carriers Corp (NASDAQ:SBLK) enjoys the backing of a number of institutional investors. Michael Weinstock’s Monarch Alternative Capital holds the second-largest position in the company, which amounts to around 6.1 million shares. The New York-based firm is very bullish regarding the stock, as it makes up for 15.4% of its equity portfolio and is one of its top picks. Andrew Schwartz’ Adams Hill Capital also boasts a significant stake in the shipping firm, amounting to 860,500 shares as of the third quarter of 2014. Nevertheless, no other investment firm is as invested in Star Bulk Carriers future as Oaktree Capital Management, which owns more than half of the company’s outstanding stock.

Disclosure: Pablo Erbar holds no position in any stocks or funds mentioned.