Fredriksen returns to public dry bulk market with 10% stake in Greece’s Star Bulk

An SEC filing on 18 March reveals Mr Fredriksen now holds 11.8M shares, representing a 10% stake in the Greece-based dry bulk giant. This move comes just two weeks after he sold his stake in Golden Ocean to CMB.TECH, a company controlled by the Saverys family.

At the time of his exit from Golden Ocean, analysts speculated Mr Fredriksen’s departure from the dry bulk sector could signal a negative outlook for the industry. His privately held shipping company, Seatankers Management, had also been reducing its exposure to dry bulk, reportedly divesting older vessels in recent months, with expectations more could follow.

Taking advantage of P/NAV arbitrage

However, with this latest investment in Star Bulk – the largest US-listed dry bulk company – Mr Fredriksen has made a notable return. Market observers, though, remain divided on whether this signals confidence in the broader dry bulk market or is simply a strategic investment in a well-performing company.

Cavalier Shipping founder James Lightbourn told Riviera this move could be seen as Mr Fredriksen capitalising on a price-to-net asset value (P/NAV) arbitrage. He sold his Golden Ocean stake at a valuation above NAV (close to a 25% premium) and then bought into Star Bulk at a 30% discount to NAV.

"The size of his overall exposure to publicly listed dry bulk companies is now a billion dollars less than it was just a few weeks ago. He sold his Golden Ocean stake for approximately US$1.2Bn and purchased nearly US$200M worth of Star Bulk shares. Therefore, I wouldn’t rush to interpret this as a purely bullish call on the dry bulk market as a whole," noted Mr Lightbourn.

Strong financial performance

Star Bulk posted strong financial results in 2024. Voyage revenues surged to US$1.3Bn, up from US$949M in the previous year. Additionally, net income rose from US$174M in 2023 to US$305M last year.

The company has positioned itself as a key consolidator in the dry bulk industry, executing nine mergers since 2018. Currently, Star Bulk operates a fleet of 153 bulk carriers with a total capacity of 14.6M dwt and an average vessel age of 11.7 years, including under-construction tonnage.

With a market capitalisation approaching US$2.0Bn, Star Bulk has seen its share price rise by approximately 11% over the past month, maintaining a similar growth trend over the last three months, according to MarketWatch.

Mr Fredriksen’s investment was made through his affiliated entities: Famatown Finance Ltd, Greenwich Holdings Ltd, and CK Ltd. The latter serves as the trustee of two trusts that indirectly hold all shares of Greenwich Holdings and Famatown Finance. These trusts were established by Mr Fredriksen for the benefit of his immediate family.