Mudrick Capital Management
| Company type | Limited Partnership |
|---|---|
| Industry | Private equity, Distressed securities |
| Founded | 2009 |
| Founders | Jason Mudrick |
| Headquarters | New York, New York |
| Products | Private equity funds, Hedge funds |
| Total assets | $2.8 billion[citation needed] |
| Website | www.mudrickcapital.com |
Mudrick Capital Management is an investment firm specializing in distressed credit and event driven investing. The firm was founded by Jason Mudrick, its current Chief Investment Officer, in 2009.[1] The firm is located in New York City and, as of June 2019, manages approximately $2.8 billion in assets.[2]
Mudrick Capital typically seeks an event, such as a balance sheet restructuring, a spin-off of assets or the modification of a corporate strategy, that can allow it to capture an undervaluation spread.[3]
History
Since its inception in 2009, Mudrick Capital has raised five hedge funds to invest in distressed securities:
- Mudrick Distressed Opportunity Fund
- Mudrick Distressed Opportunity Drawdown Fund
- Mudrick Distressed Opportunity Specialty Fund
- Mudrick Distressed Energy Co-Investment Fund
- Mudrick Distressed Senior Secured Fund Global
In 2016, Mudrick Capital’s Distressed Opportunity Fund ranked 1st on Bloomberg’s 100 top-performing large hedge funds with a 38.7% return that year.[4]
In September 2017, the firm converted its 15.3% stake in Verso Corporation, a paper milling company, into an activist holding, citing frustration with the board’s inaction to address the company’s poor performance.[5] In response, Verso announced its board had formed a strategic alternatives committee as well as the resignation of its chairman Rob Amen. Mudrick Capital then switched its stake back to passive.[6]
In May 2018, Mudrick Capital filed a lawsuit against satellite communications company Globalstar, where Mudrick is the largest outside investor, with a 5.6 percent stake, over its proposed merger with FiberLight LLC, stating that the terms of the deal were overvalued at $1.65 billion.[7][8] That deal was called off by Globalstar in August 2018.[9]
In September 2018, Mudrick Capital and HG Vora Capital Management LLC managed an outbidding for Pebblebrook Hotel Trust to acquire LaSalle Hotel Properties for $5.2 billion instead of the $4.8 billion all-cash deal by Blackstone Group LP.[10]
References
- ^ "Jason Mudrick," CNBC, August 15, 2016.
- ^ Mudrick Capital, Our Team
- ^ "About Us". Mudrick Capital. Mudrick Capital. Retrieved October 28, 2018.
- ^ Parmar, Hema; Karsh, Melissa; Porzecanski, Katia (1 March 2017). "The Top Hedge Funds of 2016 Share Best Bets for This Year". Bloomberg News. Retrieved 27 October 2018.
- ^ Stephen Taub, "Mudrick Converts Verso Stake Into Activist Position," Institutional Investor, September 19, 2017.
- ^ Stephen Taub, "Jason Mudrick’s Not-So-Subtle Victory Lap," Institutional Investor, October 20, 2017.
- ^ "Mudrick Capital sues Globalstar over merger with FiberLight," Reuters, May 17, 2018.
- ^ "Mudrick Capital Sues Globalstar Over 'Self-Dealing' Merger". www.bloomberg.com.
- ^ "Globalstar’s $1.65B merger terminated," New Orleans CityBusiness, August 3, 2018.
- ^ Ronald Orol, "LaSalle's Pebblebrook Deal Marks Insurgent Victory," The Deal September 6, 2018.