The Rise and Fall of Greywolf Capital: A Q2 vs Q3 2020 13F Holdings Analysis

Greywolf Capital Management is a New York-based investment management firm founded in 2003. The firm primarily serves high net worth individuals, institutions, and family offices. Greywolf invests in a variety of asset classes including credit, equity, and derivatives. In this blog post, we will analyze the changes in Greywolf Capital's 13F holdings from Q2 to Q3 of 2020.

Greywolf Capital filed its 13F for Q2 2020 on August 14th, 2020, and its 13F for Q3 2020 on November 16th, 2020. The 13F filings show the firm's long positions in US equities and options, along with the number of shares and the market value of those positions.

Out of the 10 stocks, Greywolf Capital held in Q2 2020, it increased its holdings in two stocks, decreased holdings in four stocks, and sold out of the other four stocks. The largest decrease in holdings was in Mr. Cooper Group Inc (COOP), where Greywolf sold 2,173,095 shares, equivalent to a 19.3% reduction in the number of shares held from the previous quarter. Greywolf Capital also sold out of Tencent Music Entertainment Group (TME), Dropbox Inc (DBX), and DXC Technology Co (DXC).

On the other hand, Greywolf increased its holdings in Kirkland Lake Gold Ltd (KL) and Pan Amercn Silver Corp (PAAS.TO). The firm increased its holdings in Kirkland Lake Gold Ltd (KL) by 60,000 shares, equivalent to a 14% increase in the number of shares held. The firm also maintained its holdings in Pan Amercn Silver Corp (PAAS.TO), at 300,000 shares.

In Q3 2020, Greywolf Capital held positions in seven different stocks, out of which it decreased holdings in two and sold out of one altogether. The largest decrease in Greywolf's holdings was in Mr. Cooper Group Inc (COOP), where it reduced its holdings by 2,172,095 shares, equivalent to a 54.9% reduction in the number of shares held. Greywolf also decreased its holdings in Kirkland Lake Gold Ltd (KL) by 60,000 shares, equivalent to a 14.5% reduction in the number of shares held.

Interestingly, despite reducing holdings, the total value of shares Greywolf held in Kirkland Lake Gold Ltd (KL) and Pan Amercn Silver Corp (PAAS.TO) increased in Q3 2020 as compared to Q2 2020, by 1.7% and 5.8%, respectively.

In conclusion, Greywolf Capital's Q2 vs Q3 2020 13F holding comparison analysis reveals that the firm reduced its holdings in four companies and sold out of four others in Q2 2020. The firm retained positions in two companies, out of which it reduced its holdings in two stocks in Q3 2020. Interestingly, the total value of Greywolf Capital's holdings in two stocks increased despite reducing the number of shares held. This indicates that Greywolf is focusing on quality over quantity in its portfolio composition. The 13F filings provide valuable information to investors intending to invest in Greywolf Capital or any of the companies it holds positions in.