Daniel Lewis, Orange Capital Go Activist On PHH Corporation
PHH Corporation (NYSE:PHH) recently became an addition to the equity portfolio of Orange Capital, an activist hedge fund managed by Daniel Lewis. In a 13D filing with the Securities and Exchange Commission, Orange Capital disclosed the acquisition of almost 2.9 million shares, with the stake's value amounting to $64.4 million, at the current price of PHH Corporation's stock. In addition, Orange Capital said that it considers PHH an "attractive investment opportunity" and expressed some ideas that might help the company to bring more returns for shareholders.
"We believe there are both immediate and near-term options available to management that would improve shareholder returns while preserving, and in most cases enhancing, the Company’s credit profile. Specifically, we have four recommendations for management and the Board of Directors:
1)Create a captive finance vehicle which would own a significant stake in the Company’s newly originated and existing excess MSRsSenator Investment Group, managed by Doug Silverman and Alexander Klabin, Matt Sirovich and Jeremy Mindich's Scopia Capital, and Israel Englander's Millennium Management among others.