JGWPT Holdings Inc (JGW) Rises On Kerrisdale Investment


Shares of JGWPT Holdings Inc (NYSE:JGW) rose as much as 9% today after Kerrisdale Partners disclosed a stake in the company. The firm filed a 13G filing with the Securities and Exchange Commission today stating the size of its stake in the company.

Kerrisdale discloses stake

In the 13G filing, Kerrisdale disclosed a 6.08% stake in JGWPT Holdings Inc (NYSE:JGW), which amounts to a little over 682,000 shares. Although JGWPT isn’t very well known, its website states that it focuses on “structured settlement payment purchasing, annuity payment purchasing, lottery payment purchasing and pre-settlement funding.” The company owns JG Wentworth and Peachtree Financial Solutions. This week, the company also announced a $233.9 million fixed rate asset-backed securitization. The company’s CEO said they are seeing “robust demand” for their asset-backed program.

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Kerrisdale often provides a thesis along with its major investments. In its recent fourth quarter letter, the firm said that at the end of the quarter, Jones Lang LaSalle Inc (NYSE:JLL) was its third largest position. It went on to detail its thesis regarding the company, which it began investing in starting August 2013.

Others highlight JGWPT Holdings

Kerrisdale Partners isn’t the only firm which has taken an interest in JGWPT Holdings Inc (NYSE:JGW) of late. Seeking Alpha contributors SA Pro and KL Investment Partners also wrote about the company last month. KL analysts said they see a “strong moat in a niche industry with 50%-plus upside. They pointed to the company’s free cash flow and said it is “cheaply priced” because the company focuses “on an esoteric segment,” isn’t well-known and filed for bankruptcy during the 2008 financial crisis.

SA Pro called JGWPT Holdings Inc (NYSE:JGW) one of its top ideas and said there’s “massive potential” there and “room to grow for decades.” The firm also noted that it was trading well below the industry multiples.