Hearty Investor Puts $23 Million into Yellow

Yellow, a less-than-truckload logistics firm, has been facing significant challenges, including a labor dispute and the threat of bankruptcy. However, MFN Partners Management has shown confidence in the company by investing nearly $23 million in Yellow, making it the company's largest shareholder within a span of just 20 days.

The Boston-based investment firm began buying Yellow stock on July 10, coinciding with the company's extension to negotiate with the International Brotherhood of Teamsters and streamline its operations. From July 10 to July 31, MFN acquired a total of 22 million Yellow shares for $22.5 million, with an average price per share of $1.02, as reported in forms filed with the Securities and Exchange Commission.

MFN currently holds a 42.5% stake in Yellow, surpassing the Treasury Department in terms of ownership. Interestingly, MFN's SEC filings reveal that they are also the largest investor in Yellow's competitor, XPO, holding an 11% stake in the company.

Despite ongoing challenges faced by Yellow, MFN's stock purchases have boosted share prices. It is worth noting that Yellow has already suspended its operations.

In addition to Yellow and XPO, MFN's SEC filings indicate investments in car dealer Lithia Motors and financial-services firm PennyMac Financial Services, where MFN co-founder Farhad Nanji serves as a director.