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: firstname.lastname@example.org.