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Steven Pei’s Gratia Capital’s Return, AUM, and Holdings (Part II)

Nina Zdinjak

Read the beginning of this article here.

The second most valuable stake in Gratia Capital’s equity portfolio was in a leading commercial and real estate advisory company Newmark Group Inc (NASDAQ:NMRK). This is actually a subsidiary of Newmark Knight Frank, which recently announced that its team from Chicago office was awarded the Greater Chicago Food Depository's (GCFD) 2018 Office Property Representative of the Year award. Over the last six months, Newmark’s shares lost 20.61%, having a closing price on April 22nd of $8.32. For the fourth quarter of 2018, Newmark Group reported revenues of $631.7 million and post-tax adjusted earnings per share of $0.45 compared to revenues of $460.6 million and post-tax adjusted earnings per share of $0.30, in the same quarter of 2017. It also disclosed GAAP net income per fully diluted share of $0.09, versus GAPP net loss per fully diluted share of $0.34 in the corresponding quarter of 2017. The company has a market cap of $1.98 billion, and it is trading at a price-to-earnings ratio of 12.89. During the quarter, Gratia Capital lowered its stake in Newmark Group by 17% to 1.14 million shares with a value of $9.13 million, amassing 15.59% of its 13F portfolio.

Gratia Capital’s third largest long position at the end of the fourth quarter of 2018 was in a leading North American-based distributor of construction products, GMS Inc (NYSE:GMS). The company’s stock lost 54.02% over the past 12 months, and it was trading at $17.26 on April 22nd. At the end of 2018, the fund reported $2.66 million worth a position, on the account of 248,485 shares outstanding, after it had lowered its stake by 66%.  GMS Inc has a market cap of $711.63 million, and it is trading at a price to earnings ratio of 15.27. Next in line of the biggest positions in Gratia Capital's 13F portfolio was the one in Century Communities, Inc. (NYSE:CCS). After the fund had lowered its stake in it by 72% it was worth $2.59 million, on the account of 150,011 shares outstanding.

The second biggest new addition to Gratia Capital’s fourth quarter portfolio was Centric Brands Inc (NASDAQ:CTRC), in which the fund established a position worth $237,000, on the account of 69,072 shares outstanding. Centric Brands is a kid’s wear, and women’s and men’s accessories and apparel designer and producer, with a market cap of $220.22 million. Year-to-date, Centric Brands’ shares gained 8.26%, and the stock had a closing price of $3.80 on April 22nd. In its last financial report for the third quarter of 2018, the company disclosed a total net loss of $10.6 million and loss per share of $0.89, compared to net loss of $0.2 million and net loss per share of $0.12 in the corresponding quarter of 2017. Centric Brands also reported total net sales of $39.83 million for Q3 2018 and $42.39 million for Q3 2017.

Gratia Capital’s third new stake in the fourth quarter of 2018 was in a real estate company Legacy Housing Corp (NASDAQ:LEGH), whose 8,000 shares with a value of $95,000 the fund purchased. Over the last six months, the company’s stock lost 1.33%, and on April 22nd it was trading at $11.87. The company has a market cap $286.04 million, and it is trading at a price-to-earnings ratio of 10.86.

Disclosure: None This article was originally published at Insider Monkey.