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Archer Capital Management Return, AUM, and Holdings

Liliana De la Torre

Archer Capital Management is a hedge fund advisory firm based in New York City and Beverly Hills, California. It was founded in January 2006 by Eric Edidin and Joshua Lobel. Eric Edidin received a BA  with highest distinction Degree from the University of Michigan and an MBA from Harward Business School. His professional experience includes being Senior Vice President at York Capital, where he became well known in the sector of investments; prior to that, he has worked as an Associate at Blackstone Group in the private investment bank's restructuring team, and also as an Associate in Global Investments at Morgan Stanley Capital Partners and as Vice President and Founding Team Member at Etrana. As per Joshua Lobel, before co-founding Archer Capital Management, he was Principal at Redwood Capital Management. Joshua Lobel graduated from the University of California and holds an MBA from the University of Pennsylvania.

Their fund pursues a middle-market distressed and special situations debt and equity securities investment strategy. It launches and manages hedge funds for their clients by investing in diversified financial instruments and securities, including syndicated bank debt, high yield bonds, non-performing distressed fixed income securities, equities and convertible securities. Other investments include mortgage notes, leases, trade claims and other equity credit instruments. Currently, the firm serves as the investment manager to three private funds. Archer Capital Management’s investment philosophy must be very bright as it has brought back some good returns in recent years.

Eric Edidin - Archer Capital

For example, its Archer Capital Fund achieved its best net return in 2013 with a brilliant 13.27% in the sector of fixed income asset back loans. Then in 2014, it generated a return of 5.44%, followed by a down year – 2015, in which it lost 7.43%. In 2016 Archer Capital Fund stood back on its feet with a return of 4.36%. 2017 was also a good year for the fund, as it has returned 10.62%. From January through October 2018 it gained 2.51%. Archer Capital Fund's total return stood at 101.00%, for a compound annual return of 5.7%, while its worst drawdown was 14.18. According to its Plain Brochure, as of February 2017, Archer Capital Management holds $1.08 billion in regulatory assets on a discretionary basis and no regulatory assets on a non-discretionary basis.

At the end of the third quarter 2018, Archer Capital Management’s equity portfolio was valued at $135.12 million. The biggest stake it held was in Everi Holdings Inc (NYSE:EVRI), with the fund reporting 1.87 million shares, worth $17.15 million. The fund actually lowered its stake in the company during the third quarter 16%, but it still remained its largest holding occupying 12.69% of its portfolio. More about similar changes and the fund’s third quarter investment moves you can find on the next page.

Archer Capital Management’s second largest stake at the end of the third quarter was in Comcast Corporation (NASDAQ:CMCSA), a worldwide known media and television broadcasting services company. The fund reported holdings its 410,000 shares, valued $14.52 million. This position counted for 12.69% of the fund’s portfolio. Comcast Corporation (NASDAQ:CMCSA) was one of 30 most popular stocks among hedge funds in Q3 of 2018.

There was only one new addition to the fund’s equity portfolio during the third quarter and that was Akorn, Inc.(NASDAQ:AKRX) in which the fund established a position that counted 80,600 shares that were worth $1.05 million. Akorn Inc. is an Illinois-based pharmaceutical company that develops, various pharmaceuticals and other consumer health products.

During the third quarter, the fund became more optimistic about some stocks that were already in its portfolio. Those include Wyndham Hotels & Resorts Inc (NYSE:WH), in which the fund boosted its position by 78% to 194,138 shares, worth $10.79 million, and NII Holdings Inc (NASDAQ:NIHD) it raised its stake by 23% to 528,323 shares, valued $3.01 million. It also increased its stake in BioScrip Inc (NASDAQ:BIOS) by 17% to 1.37 million shares that were valued $4.26 million.

On the other hand, Archer Capital Management decided to significantly reduce its stakes in Emerald Expositions Events, Inc. (NYSE:EEX) by 66% to 80,796 shares, and in Equinix Inc (NASDAQ:EQIX)  by 55% to 10,000 shares valued $ 4.33 million.

Disclosure: None

This article was originally published at Insider Monkey.