We're posting up notes from the Invest For Kids Chicago Conference 2017. Next up is Amos Meron of Empyrean Capital Partners who pitched long Seritage (SRG).
Amos Meron's Invest For Kids Chicago Presentation: Long Seritage
Looking
for dramatic life-cycle changes that create opportunities in the
market. There is an ongoing misunderstanding of the Seritage (SRG) -
Sears (SHLD) relationship.
SRG was created as a way to carve out
(siphon) some of a SHLD’s best real estate – deal was structured as a
giant sale-leaseback, 235 properties, 37 million square feet. SRG can
“claw back” certain properties from SHLD over time and redevelop them.
“I’m
not dead yet” – all mall-based or retail real estate is pressured, but
it’s not all the same. SRG has a national portfolio of really good
assets with solid demographics. SRG is nearing its goal of having 50%
of its rent from non-SHLD tenants by FYE 2017; could be 2/3 by FYE
2018. SHLD pays <$5 per square foot, while the average for new
tenants is $19.
SRG trades at $80 per square foot versus
$128 for “C” space companies. SHLD chapter 11 would have a fleeting
impact on SRG. At a 6% cap rate on FY18 NOI, SRG has 40% upside to $60.
Risk is a further fall in retail, so short retail REITS against SRG long.
For more from this event, check out the rest of the presentations from Invest For Kids Chicago 2017.
Monday, November 6, 2017
Amos Meron Long Seritage: Invest For Kids Chicago Presentation
Tuesday, November 8, 2016
Empyrean Capital Increases Enova International Stake
Michael Price and Amos Meron's hedge fund Empyrean Capital has filed a 13G with the SEC regarding its position in Enova International (ENVA). Per the filing, they now own 7.1% of the company with over 2.37 million shares.
This means they've boosted their position size by over 2.11 million shares since the end of the second quarter when they owned only 264,185 shares. The filing was made due to activity on October 25th.
About Empyrean Capital
Empyrean is an event-driven hedge fund based in California. As of their last 13F filing, they reported assets under management of $2.21 billion, but keep in mind that doesn't include international stock positions, cash, etc.
About Enova International
Per Google Finance, Enova International is "a provider of online financial services to non-prime consumers and small businesses, providing access to credit powered by its advanced analytics, technology, and online platform and services. Enova has provided over four million customers around the globe access to more than $17 billion in loans and financing. The financial technology company has a portfolio of trusted brands serving consumers, including CashNetUSA, DollarsDirect, NetCredit, On Stride Financial, Pounds to Pocket, QuickQuid and Simplic; two brands serving small businesses, Headway Capital and The Business Backer, and offers online lending platform services to lenders. Through its Enova Decisions brand, it also delivers on-demand decision-making technology and real-time predictive analytics services to clients."
