Wilbur Ross, quintessential distressed asset investor, has poured more than 40% of his portfolio into two assets: EXCO Resources (XCO) and Bank of Ireland (IRE). Both, like many of his other investments, are investments in recoveries: one in natural gas prices and one in the economy of Ireland. So far, on paper he has lost a considerable amount on EXCO and still has a thin profit on Bank of Ireland.
For over a decade beginning in the mid-70s, Wilbur Ross was the top bankruptcy adviser, leading the worldwide bankruptcy advisory practice at Rothschild Inc. In 2000, Ross founded his own firm, WL Ross & Co., with $440 million. He now has a net worth of $2.2 billion and manages more than $10 billion, having made his initial fortune steel, coal, textiles and car parts. He looks for near-dead assets to turn them around, not liquidate them.
Though Ross has a history of success in the most dire turnaround situations, his history with EXCO Resources (XCO) has been less glorious. But he has been buying the stock from the third quarter 2010 to the present and it is his highest conviction pick. He purchased the bulk of his shares at their highest price in the last several years (approximately $17.50 – $20) and increased his holdings three times in the first quarter of 2012, according to GuruFocus Real Time Picks. He now owns 29,504,077 shares or 13.62% of the company.
Read more: GuruFocus
