Derek C. Schrier and Indaba Capital Management’s Top Picks From the First 13F
Derek C. Schrier founded San Francisco based Indaba Capital Management in 2010. The fund is an event-driven and opportunistic value investor that employs a mix of fundamental investment strategies. Mr. Schrier has an MBA from the Graduate School of Business at Stanford University. After his stint with Goldman, Sachs & Co., from 1990 to 1992, Mr. Schrier joined Thomas Steyer's Farallon Capital Management LLC., in 1998. He was elected as a partner in 2002. He was with Farallon till 2008.
In its latest 13F, Indaba Capital Management has disclosed its holdings as held at the end of the fourth quarter of 2013. The total value of the fund’s equity portfolio is approximately $269.5 million.
First on the list is Suncoke Energy Inc (NYSE:SXC), in which the fund owns 1.38 million shares, with a reported value of $31.52 million. The Illinois based independent producer of coke has a market cap of $1.55 billion.
Early this month, The Street upgraded Suncoke Energy's rating to ‘Buy’ from ‘Hold’ despite the fact that the company recorded a decline in its net income for the fourth quarter of 2013. Late last month, Suncoke reported earnings of $0.16 per share for the fourth quarter of last year, down from $0.39 per share in the year ago period.
Matthew Mark’s Jet Capital Investors, which holds 3.74 million shares, and Kingstown Capital Management, led by Michael Blitzer, with 2.0 million shares, are among the largest shareholders of Suncoke Energy.
Next is the real estate investment trust, Cole Real Estate Investments, Inc (NYSE:COLE). The fund reported holding approximately 2.20 million shares, worth $30.83 million. However, earlier this month, American Capital Properties Inc. (NASDAQ:ARCP) acquired Cole Real Estate for a total of $11.2 billion.
On the third spot is Select Income REIT (NYSE:SIR), in which the fund disclosed a $25.53 million stake, which amasses approximately 954,700 shares. The REIT has a market cap of $1.41 billion. Last week, the Massachusetts based REIT declared its fourth quarter financial results for 2013. It reported earnings of $48 per share versus $0.52 per share recorded in the year ago period.
Other stakeholders of Select Income REIT include Yale M. Fergang and Robert W. Medway’s Royal Capital, which held 317,500 shares, followed by Millennium Management, led by Israel Englander, which held approximately 186,000 shares of the company’s common stock at the end of the fourth quarter last year.
Fourth on the list is the intellectual investment and advisory company, Pendrell Corporation (NASDAQ:PCO), in which the fund holds 12.15 million shares. The value of the current holding is equivalent to $24.42 million. Pendrell Corp (NASDAQ:PCO) is a debt free company which acquires and develops businesses with unique technologies that are often protected by intellectual property rights.
Other stakeholders invested heavily in Pendrell Corp involve James Dondero’s Highland Capital Management, which held 45.61 million shares, and Ariel Investments, led by John W. Rogers, which held approximately 13.01 million shares as at the end of the fourth quarter of last year.
Texas based Linnco LLC (NASDAQ:LNCO) is the fifth largest holding. Indaba Capital Management holds 687,100 shares, which is equivalent to $21.17 million at the end of last year. Other stakeholders of Linnco LLC include Robert Emil Zoellner’s Alpine Associates, which held 3.33 million shares, followed by Tig Advisors, led Carl Tiedemann and Michael Tiedmann, which held approximately 2.62 million shares of the company’s common stock at the end of the fourth quarter last year.