Walter Investment Management
Tampa, Florida-based Walter Investment Management (WAC) is a mortgage portfolio owner and servicer catering to the sub-prime segment.
Centerbridge Partners bought 1.8 million shares of the company, while Pine River added 1.5 million shares. Citadel and George Soros' Soros Fund Managament were also notable buyers.Walter Investment is among the stocks projected to benefit from the mortgage mess, according to FBR Capital analyst Paul Miller. The thesis is that "1) the special servicing market is poised to experience substantial growth over the next two years. 2) Many of the private-label litigation actions between investors and big banks still need to be resolved and special servicers will likely be able to capitalize on the new business and 3) the amount of delinquencies outstanding will ensure that there is an adequate pipeline for special servicing over the next five years." The company's has close to 1 million loans in its servicing portfolio. Shares of Walter Investment have risen 18% in 2011. Only a handful of analysts cover the stock with two rating it a buy or outperform and 2 maintaining a hold rating. >>To see these stocks in action, visit the 5 Financial Stocks Hedge Funds Are Buying portfolio on Stockpickr. --Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV