Mudrick Capital Management

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 Management
Limited Partnership
IndustryPrivate equity, Distressed securities
Founded2009
FoundersJason Mudrick
HeadquartersNew York, New York
ProductsPrivate equity funds, Hedge funds
Total assets$2.8 billion
Websitewww.mudrickcapital.com

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]

gollark: Why not, if they're mentally sound?
gollark: *Physical* requirements? Why?
gollark: Maybe someone will make magic everything-producing nanofabricators at some point, but *now* we don't have that and everything has to come out of very complex supply chains involving many large factories.
gollark: You do actually need big nonlocal things to get economies of scale so we can have nice things like any advanced technology whatsoever.
gollark: It's not "weird mesh [REDACTED]". It's just a point to point link. You configure the allowed IPs on each end.

References
  1. "Jason Mudrick," CNBC, August 15, 2016.
  2. Mudrick Capital, Our Team
  3. "About Us". Mudrick Capital. Mudrick Capital. Retrieved October 28, 2018.
  4. 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.
  5. Stephen Taub, "Mudrick Converts Verso Stake Into Activist Position," Institutional Investor, September 19, 2017.
  6. Stephen Taub, "Jason Mudrick’s Not-So-Subtle Victory Lap," Institutional Investor, October 20, 2017.
  7. "Mudrick Capital sues Globalstar over merger with FiberLight," Reuters, May 17, 2018.
  8. "Mudrick Capital Sues Globalstar Over 'Self-Dealing' Merger". www.bloomberg.com.
  9. "Globalstar’s $1.65B merger terminated," New Orleans CityBusiness, August 3, 2018.
  10. Ronald Orol, "LaSalle's Pebblebrook Deal Marks Insurgent Victory," The Deal September 6, 2018.
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