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.

Steelhead Partners Cut Stake In Resolute Forest Products Inc (RFP)

Michael Johnston and his fund, Steelhead Partners, are limiting their exposure to Resolute Forest Products Inc (NYSE:RFP). In a recent Form 4 filing with the Securities and Exchange Commission, Steelhead Partners has disclosed the sale of 247,346 shares in seven transactions at prices varying between $19.75 and $20.00 apiece. As a result, the fund is left with 12.5 million shares which, given the current market price of $18.84 per share, are worth approximately $236 million.

Resolute Forest Products Inc (NYSE:RFP)

Resolute Forest Products Inc (NYSE:RFP) is also on the radar of Prem Watsa, the manager of Fairfax Financial Holdings. In its latest 13F filing, Fairfax disclosed ownership of over 29 million shares valued at approximately $465 million. Francis Chou is also bullish on this stock, having increased his fund’s stake by 2% during Q4 of 2013. His fund, Chou Associates Management, holds 4.22 million shares reportedly worth $67.7 million.

A manufacturer of specialty papers and wood products, Resolute Forest Products Inc (NYSE:RFP) has a market cap of $1.78 billion and does not pay a dividend. So far this year, the stock has advanced by 18% and is traded at a forward Price to Earnings (P/E) ratio of 12.xx. The company has announced $1.15 billion in revenues and earnings of $0.21  per share, for the 2013 fourth quarter. Analysts expect Resolute Forest Products to register revenues of $1.07 billion and earnings per share of $0.34  for the first quarter of 2014. The stock is mainly recommended as ‘Hold.’

During the fourth quarter of 2013, Johnston has increased his fund’s investment in Alpha Natural Resources, Inc. (NYSE:ANR) to 12.5 million shares valued at $89.4 million, making it the fund’s 3rd largest position as of December 31, 2013. He has also slightly decreased Steelhead’s second biggest equity position, Level 3 Communications, Inc. (NYSE:LVLT), to 2.71 million share reportedly worth approximately $90 million.

Disclosure: none.

Recommended reading:

James Flynn, Deerfield Management Boost Stake in Streamline Health Solutions Inc. (STRM)

Hedge Funds Interested in Staples Inc. (SPLS)

Avoid These Stock Picks of John Griffin

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.