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Marathon Asset Management’s Return, AUM, and Holdings (Part II)

Nina Zdinjak

Read the beginning of this article here.

Marathon Asset Management’s biggest position at the end of the first quarter of 2019 was in one of the largest gaming hotel and casino corporations in the world, Caesars Entertainment Corporation (NASDAQ:CZR). During the quarter, the fund actually lowered its stake in the company by 15% to 1.88 million shares, with a value of $16.3 million, amassing 4.24% of its equity portfolio. This $6.31 billion market cap company was founded back in 1937 in Reno, Nevada, and since then it has grown and expanded, now managing its casinos and providing its services on three continents. Year-to-date, the company’s stock gained 45.23%, and on June 20th, it had a closing price of $10.05. Its price-to-earnings ratio is 56.89. In its last financial report for the first quarter of 2019, Caesars disclosed net revenues of $2.12 billion and a loss per share of $0.32, compared to net revenues of $1.97 billion and a loss per share of $0.05 in the same quarter of 2018.

Berry Petroleum Corporation (NASDAQ:BRY) was the fund’s second largest holding at the of Q1 2019. Its position in the company was valued $14.64 million, on the account of 1.27 million shares. As the name denotes it, Berry Petroleum is a petroleum, and natural gas producer and explorer. The company is headquartered in Bakersfield, California, and has a market cap of $894.94 million. For the first quarter of 2019, Berry Petroleum reported a net loss of $34 million, or a loss of $0.42 per diluted share, and adjusted net income of $24 million or $0.30 per diluted share. This compares to net income of $131.77 million or $1.56 per diluted share, and to adjusted net income of $34.80 million in the previous quarter (Q4 2018). In the report, the company also announced a regular $0.12 per share dividend for the second quarter of 2019. Over the past 12 months, Berry’s stock lost 30.68%, and on June 20th, it had a closing price of $11.09. The same day, UBS Group set a price target of $14.00, with a ‘Buy’ rating on it.

The third most valuable position in Marathon Asset Management’s portfolio, at the end of March 2019, was in Constellium N.V. (NYSE:CSTM) and it counted 1.48 million shares with a value of $12.59 million, comprising 3.27% of its 13F portfolio. Constellium N.V. is a global producer of aluminum rolled products, which is responsible for some important advancements in the industry on a  global level. Its market cap is $1.37 billion, and the stock is trading at a P/E ratio of 6.98. For the first quarter of 2019, the company disclosed revenue of €1.54 billion and diluted and basic earnings per share of €0.17, compared to revenue of €1.29 billion and diluted and basic loss per share of €0.18 in the same quarter of 2018.  On June 19, Deutsche Bank restated its ‘Buy’ rating on the stock. Over the last six months, the company’s stock gained 55.62%, having a closing price on June 20th of $10.10.

The remaining two long positions in the fund’s 13F portfolio included Ladder Capital Corp (NYSE:LADR) and City Office REIT, Inc. (NYSE:CIO). In Ladder Capital, the fund reported $4.98 million worth of stake, on the basis of 292,740 shares outstanding, while in City Office Reit the fund held $1.13 million worth a position, on the account of 100,000 shares.

 

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This article was originally published at Insider Monkey.