John Paulson (Trades, Portfolio) has a 10% larger position in Overseas Shipholding Group Inc. as of March 16, according to GuruFocus Real Time Picks.
The head of $19.3 billion hedge fund Paulson & Co., Paulson’s purchase added 5,642,505 shares to his firm’s existing stockholding of Overseas Shipholding Group (AMEX:OSG, Financial), which afterward totaled 62,067,587 shares. His stock represents a 16.85% stake in the company, which together with the 3,868,216 warrants he holds, amounts to 17.9% ownership.
OSG, once the largest tankers transporting crude and petroleum products based in the U.S., emerged from bankruptcy in August 2014 as a reorganized company. It had filed for bankruptcy protection in November 2012, due to a drop in shipping rates, decreased demand for oil and increasing competition. It also received a multi-million dollar tax bill due to discrepancies tied to its international units that caused it to restate its financials going back 12 years, as well as faced litigation involving its former legal counsel.
One of Paulson & Co.’s strategies is investing in bankruptcy reorganizations and distressed credit. He jumped into OSG the action early with a group of investors backing the distressed company, and announced a stake of 61,384,234 shares in August 2014 as it emerged from bankruptcy.
OSG operates around 79 vessels chartered to third parties via medium- to long-term agreements. Since relisting on the NYSE MKT on Dec. 31, OSG shares have declined 27.8% to close at $2.10 per share Monday.
In the fourth quarter, OSG reported an 18% increase in revenue from the corresponding prior-year period to $234.4 million, driven by higher rates, volumes and petroleum crude rates. Net income fell to $9.3 million, or 2 cents per diluted share, from $26.5 million, or 5 cents per diluted share for the same periods. The decrease primarily resulted from $27.6 million spent on premiums and fees related to repurchased notes.
The company’s balance sheet showed $522.4 million in cash at the end of the year, and the company paid a dividend of 8 cents per share.
The only other investors tracked by GuruFocus that held shares of OSG, Jim Simons (Trades, Portfolio) and Murray Stahl (Trades, Portfolio), sold out in the fourth quarter.
See more recent stock buys and sells at Real Time Picks, a premium feature. Not a Premium Member of GuruFocus? Try it free for 7 days.
