13F-HR: Rithm Capital Discloses Q2 2024 Equity Holdings

Rithm Capital Corp. reported its Q2 2024 equity holdings, totaling $10.26 million, primarily comprising common stock in Great Ajax Corp.

Summary

• Rithm Capital Corp. filed a Form 13F-HR for the calendar quarter ended June 30, 2024.
• The total market value of Section 13(f) securities reported by Rithm Capital Corp. and its non-Sculptor subsidiaries was $10,262,836.
• The filing disclosed a single holding: 2,874,744 shares of Great Ajax Corp. common stock, valued at $10,262,836.
• Rithm Capital Corp. exercises sole investment discretion and voting authority over all reported holdings.
• Sculptor Capital LP and its subsidiary, Sculptor Capital II LP, which are owned by Rithm Capital Corp., report their Section 13(f) positions separately due to established information barriers.

Sentiment

Score: 5

Explanation: The filing is a routine regulatory disclosure of equity holdings, providing factual information without inherent positive or negative sentiment regarding company performance. The concentration in a single stock is a factual observation rather than a sentiment indicator of the filing itself.

Positives

• Demonstrates compliance with SEC regulatory reporting requirements for institutional investment managers.
• Provides transparency into a portion of Rithm Capital Corp.'s equity investment activities for the reported quarter.

Negatives

• The reported holdings exhibit a high concentration in a single issuer, Great Ajax Corp., within this specific reporting segment.

Risks

• Concentration risk: The reported portfolio is entirely invested in Great Ajax Corp., making it highly susceptible to the performance and specific risks associated with that single company.
• Market risk: The value of the reported holdings is subject to general market fluctuations and specific industry or company-specific downturns affecting Great Ajax Corp.

Future Outlook

NA

Management Comments

• David Zeiden, Chief Legal Officer, signed the report on behalf of Rithm Capital Corp., representing that the information contained is true, correct, and complete.
• Rithm Capital Corp. ultimately owns a number of subsidiaries that exercise investment discretion over Section 13(f) Securities, including Sculptor Capital LP and its subsidiary, Sculptor Capital II LP.
• Information barriers and procedures are in place to ensure that investment discretion by the Sculptor entities is exercised independently from Rithm Capital Corp. and its non-Sculptor subsidiaries.

Industry Context

This 13F filing is a routine regulatory disclosure for institutional investment managers, providing a snapshot of their equity holdings. Rithm Capital Corp., a diversified financial services company, uses this filing to report a specific segment of its equity investments, aligning with its broader strategy that often includes real estate and mortgage-related assets. The reported holding in Great Ajax Corp., a mortgage REIT, is consistent with Rithm's investment focus.

Comparison to Industry Standards

• This 13F filing adheres to the standard regulatory disclosure requirements for institutional investment managers, providing transparency into equity holdings as mandated by the SEC.
• The reported holdings represent a specific portion of Rithm Capital Corp.'s investment discretion, explicitly excluding those managed by its Sculptor subsidiaries, which file separately.
• The concentration of the reported portfolio in Great Ajax Corp. common stock indicates a focused investment within this segment, which may differ from more diversified institutional portfolios depending on Rithm's overall asset allocation strategy.

Related Party Transactions

• Rithm Capital Corp. owns Sculptor Capital LP and its subsidiary, Sculptor Capital II LP, which exercise independent investment discretion and report their Section 13(f) positions separately due to established information barriers.

Stakeholder Impact

• Shareholders: Provides transparency into a specific segment of Rithm Capital Corp.'s equity investment portfolio.
• Regulatory bodies: Fulfills SEC disclosure requirements for institutional investment managers, ensuring compliance and market transparency.

Key Dates

Keywords

Rithm Capital, 13F-HR, Equity Holdings, Institutional Investment, Great Ajax Corp., SEC Filing, Investment Disclosure, Portfolio