Key Takeaways
- • Solus Alternative Asset Management LP reduced its Bristow Group (NYSE: VTOL) position by 63,555 shares at $28.08 per share on September 1, 2023, representing a -1.74% reduction in holdings with -0.72% portfolio impact.
- • Following the sale, Solus retained 3,588,237 shares in Bristow, maintaining a 12.73% stake in the company and 41.19% allocation within their $246 million equity portfolio.
- • Bristow Group Inc, a provider of vertical flight solutions and aviation services to energy companies and government entities, trades at $27.13 per share with a market capitalization of $764.419 million and elevated valuation metrics (PE ratio of 123.32).
- • Solus Alternative Asset Management, based in Summit, New Jersey, operates a concentrated eight-stock portfolio with primary exposure to Energy and Communication Services sectors, including positions in Chevron, Valero Energy, and Exxon Mobil.
- • GuruFocus valuation analysis suggests VTOL is modestly undervalued with a GF Value of $31.74 versus current trading price, though four warning signs have been flagged on the stock.
Summary
Solus Alternative Asset Management LP executed a modest reduction in its substantial stake in Bristow Group Inc on September 1, 2023, selling 63,555 shares at $28.08 per share. This transaction, while representing only a 1.74% decrease in the firm's holdings, underscores shifting positioning in a concentrated alternative investment portfolio. The sale reduced Solus's portfolio impact by 0.72%, leaving the firm with 3,588,237 remaining shares—equivalent to 12.73% of Bristow's outstanding equity and 41.19% of Solus's total portfolio value.
The transaction reveals Solus's continued material exposure to Bristow Group despite the reduction. Solus Alternative Asset Management, a SEC-registered investment advisor headquartered in Summit, New Jersey, maintains a specialized focus on event-driven, distressed, and special situation opportunities. The firm's $246 million equity portfolio is concentrated across eight holdings, with particular emphasis on the Energy and Communication Services sectors. Beyond Bristow, Solus's largest positions include Chevron Corp, Valero Energy Corp, and Exxon Mobil Corp, reflecting a thematic bet on traditional energy markets.
Bristow Group itself operates in the specialized vertical flight solutions and aviation services sector, serving major integrated, national, and independent energy companies. The company also provides commercial search and rescue services across multiple jurisdictions and public sector SAR operations in the United Kingdom under contract with the Maritime & Coastguard Agency. At the time of the transaction, Bristow's market capitalization stood at $764.419 million, with shares trading at $27.13 and reflecting an elevated price-to-earnings multiple of 123.32. Valuation analysis by GuruFocus suggested modest undervaluation at a GF Value of $31.74, though multiple warning signs have been identified regarding the equity.
Solus's selective reduction strategy suggests portfolio rebalancing within an energy-focused mandate rather than wholesale position liquidation, maintaining Bristow as a core holding while trimming exposure margins.
The transaction reveals Solus's continued material exposure to Bristow Group despite the reduction. Solus Alternative Asset Management, a SEC-registered investment advisor headquartered in Summit, New Jersey, maintains a specialized focus on event-driven, distressed, and special situation opportunities. The firm's $246 million equity portfolio is concentrated across eight holdings, with particular emphasis on the Energy and Communication Services sectors. Beyond Bristow, Solus's largest positions include Chevron Corp, Valero Energy Corp, and Exxon Mobil Corp, reflecting a thematic bet on traditional energy markets.
Bristow Group itself operates in the specialized vertical flight solutions and aviation services sector, serving major integrated, national, and independent energy companies. The company also provides commercial search and rescue services across multiple jurisdictions and public sector SAR operations in the United Kingdom under contract with the Maritime & Coastguard Agency. At the time of the transaction, Bristow's market capitalization stood at $764.419 million, with shares trading at $27.13 and reflecting an elevated price-to-earnings multiple of 123.32. Valuation analysis by GuruFocus suggested modest undervaluation at a GF Value of $31.74, though multiple warning signs have been identified regarding the equity.
Solus's selective reduction strategy suggests portfolio rebalancing within an energy-focused mandate rather than wholesale position liquidation, maintaining Bristow as a core holding while trimming exposure margins.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.