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. The firm is located in New York City and, as of June 2019, manages approximately $2.8 billion in assets.
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.

History

Since its inception in 2009, Mudrick Capital has raised five hedge funds to invest in distressed securities:
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.
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. 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.
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. That deal was called off by Globalstar in August 2018.
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.