In a recent 13G filing with the SEC, John Griffin's hedge fund Blue Ridge Capital has disclosed a 9.5% ownership stake in PennyMac Mortgage Investment Trust (PMT). The filing was made due to activity on July 29th, 2009 and they now own 1,584,000 shares. PMT just recently IPO'd back on July 30th, with 16 million shares priced at $20.00 per share. Obviously, given that this was an IPO, this is a brand new position for Blue Ridge. John Griffin hasn't been very active in terms of SEC filings, as the last time we covered them in-depth was their Q1 2009 portfolio. And, seeing how 13F filings are pouring in this week and next, those positions will be updated.
One thing of interest from Blue Ridge recently though is their recommended reading lists. We posted up a compilation of their favorite books by category, which you can see below:
- Blue Ridge Capital's Recommended Analytical Reading
- Blue Ridge Capital's Recommended Historical/Biographical Reading
- Blue Ridge Capital's Recommended Behavioral Finance Reading
- Blue Ridge Capital's Recommended Economics Reading
There are some phenomenal reads on those lists and we highly recommending checking out a topic you fancy. John Griffin is well known because he served as the right-hand man to Julian Robertson while at Tiger Management. Griffin eventually left to found his own fund (Blue Ridge) and became one of the many 'Tiger Cub' hedge funds in existence today. Blue Ridge employs a fundamental bent by seeking companies that dominate their industries and shorting companies laced with fundamental problems. They seek absolute return through this strategy and Griffin likes to effectively hedge with a balanced book of both longs and shorts (like hedged fund in the true sense of the word... not like some of the crazy funds out there nowadays that aren't truly hedged).
Taken from Google Finance,
PennyMac Mortgage Investment Trust is "a real estate investment trust. The Company operates as a specialty finance company that will invest primarily in residential mortgage loans and mortgage-related assets. The Company’s objective is to provide risk-adjusted returns to its investors over the long-term, primarily through dividends and secondarily through capital appreciation. The Company focuses on investing in mortgage loans, a substantial portion of which may be distressed and acquired at discounts to their unpaid principal balances."