Investment funds in New York and Connecticut were shipped in a hurry in the decade following the financial crisis, believing they would buy murders low and sell high. Many failed miserably and entertained the old people in the industry. The shipping cycle is not as predictable as newcomers think.
But at least some funds did buy at low prices and sell at high prices. An extreme example is New York-based Mangrove Partners. It bought seven container ships and unloaded six of them at surprisingly high prices when their value fell in 2017-18.
As consumer demand, no one could have predicted an explosion of container ship value as a result of COVID. And crowded Caused the fare And charter fees Soar. Mangroves who bought the fleet before COVID were lucky.
Ship brokerage company Compass Maritime calls this “one of the most notable assets in recent memory.” According to UK-based data provider Vessels Value, the six vessels were purchased for a total of $ 61 million and sold for more than $ 348 million. This means a profit of at least $ 287 million.
A ship named after the New England Patriots
It is a long-standing tradition to consider a commercial vessel as “she” and name it with a name that does not identify a woman or gender.
Mangrove chose testosterone instead. When Mangrove purchased the ship, it was renamed after a former or current member of the New England Patriots.
MP The Belichick — — Named after Bill Belichick, head coach of Mangrove Partners (MP) and Pats. Built in 2006, capacity: 5,060 20 feet worth of units. According to VesselsValue, Mangrove purchased it from Patjens Reederei in Germany for $ 9.5 million in September 2017. Alphaliner reported that the vessel and three other vessels were sold to the Mediterranean Shipping Company (MSC) in bulk for $ 240 million. All four were previously chartered to MSC. VesselsValue has set the selling price of this vessel at $ 60.4 million, which is 6.3 times the purchase price.
MP The Brady — — Named after former Pats Quarterback Tom Brady, he is now the Tampa Bay Buccaneers quarterback who won the Super Bowl LV. Built in 2005, 5,060 TEU. Mangrove purchased it for $ 7.5 million in August 2017 as part of the bulk sale of three vessels by German Rickmers Reederei, which was bankrupt at the time. It sold for about $ 60 million this month as part of MSC’s bulk transaction. That’s eight times the amount I bought four years ago.
MP Zagronk — — Named after Rob Gronkowski, a former Patz tight end who chased Brady to Bucks. Built in 2005, 5,050 TEU. Mangrove bought it from Rickmers for $ 7.5 million in August 2017 and sold it to MSC this month for eight times the purchase price.
MP Edelman — — Named after Julian Edelman, a former Pats wide receiver who retired after the 2020 season. Built in 2005, 5,060 TEU. Mangrove bought it from Rickmers for $ 7.5 million in August 2017 and sold it to MSC this month for eight times the purchase price.
MP McGuinest — — Named after Willie McGuinest, the Patriots linebacker until 2006. Built in 2010, 4,400 TEU. According to VesselsValue, Mangrove purchased from Dioryx Maritime in Greece in July 2018 for $ 15 million and sold to unspecified buyers this month for more than $ 58 million (about four times the purchase price).
MP method — Named after Tyro, a cornerback with the Patriots from 1995 to 2005. Built in 2009, 4,330 TEU. According to Vessels Value, Mangrove purchased from Dioryx Maritime in Greece in October 2018 for $ 15 million and sold to unspecified buyers this month for more than $ 58 million (about four times the purchase price).
There is another container ship in Mangrove that the broker has not yet reported for sale. It’s a 2009 4,360 TEU MP The Brown (probably named after the former wide receiver Troy Brown).
On the other hand, container ships are not the only ones that are growing rapidly. Dry bulk transportation is at its best in over 10 years.. Mangrove also owns a dry bulk carrier. Six so-called Newcastle Max class large valquas built in 2020 and 2021.
Not surprisingly, they are named after their patriots: MP The Bruschi (linebacker Tedy Bruschi), MP The Kraft (pat owner Robert Kraft), MP The Hightower (linebacker Dont’a Hightower), MP The Vrabel (linebacker Mike Vrabel, now head coach of the Tennessee Titans), MP The Harrison (Safety Rodney Harrison), MP The Vinatieri (Kicker Adam Vinatieri).
https://www.freightwaves.com/news/investor-scores-fortune-selling-container-ships-named-after-football-stars Investors Earn Big Money To Sell Container Ships Named After The Patriots