Hedge Fund’s Flagstone Re Stake Increases

Elliott Management Corp. – the activist hedge fund run by Paul Singer – now owns over 9 percent of the outstanding common stock of Flagstone Reinsurance Holdings SA after slowly buying up shares over the past several months.

According to a notice filed with the Securities and Exchange Commission on Wednesday, Elliott and its subsidiaries now own 9% of Flagstone’s outstanding common stock or 6,312,250 shares. That’s up from 7 percent of the stock a month ago, filings show.

The fund was especially active in October, snapping up 280,000 shares of the Bermuda-based reinsurer on October 18th (a day before the filing) for $8.30 apiece.

The total cost of the fund’s stake in Flagstone was $50.5 million, filings say.

Singer and his $15 billion fund traditionally focuses on distressed investments and company turnarounds.