Penn Capital Small Cap Portfolio Manager Sees Big Upside in His Stock Selections

December 10, 2018

Eric Green, CFA, is Director of Research, Senior Portfolio Manager and Senior Managing Partner at Penn Capital Management Company, Inc. Mr. Green began his career at Penn Capital in July 1997. As Director of Research, Mr. Green is responsible for guiding the firm’s day-to-day investment research process.

He also serves as the Portfolio Manager for Penn Capital’s Small Cap, Smaller Companies Growth and Mid Cap equity strategies as well as chairing the Penn Capital Equity Strategy Committee. Throughout his career, Mr. Green has focused on the energy, media, gaming and leisure industries.

In this exclusive 2,950 word interview in the Wall Street Transcript, Mr. Green illuminates his stock picking process and delivers the good news to investors for 2019.

“The uniqueness about Penn Capital is that all of our analysts and portfolio managers cover the entire capital structures of the companies that they follow. For example, if I am looking at a company, I’m looking at the bank debt, the bonds, the converts, the preferreds and the equity. We believe this perspective provides a competitive advantage versus our peers that only focus on one piece of the capital structure.”

One example of this investment style is Golden Entertainment (NASDAQ:GDEN):

“We’ve most recently accumulated a position in Golden Entertainment (NASDAQ:GDEN). Golden owns local properties in Nevada and a small property in Maryland. They recently bought the Stratosphere and Arizona Charlie’s from a private equity firm.

We believe they will invest money into Stratosphere and allow the returns to be significantly higher than they are right now. Valuation is very attractive as they will be paying down the debt once they finish their capital expenditures with the Stratosphere. Golden has an extremely talented management team and is likely to acquire additional properties or become an acquisition candidate themselves.”

Get the complete picture on many of the other top picks from the Penn Capital portfolio by reading the entire 2,950 word interview in the Wall Street Transcript.