How did Navios Partners outperform other dry bulk shippers?
While a shipping company is largely influenced by industry-related fundamentals, management experience and skills are key factors that could determine whether the company outperforms or underperforms (or even go bankrupt) over the long run.
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As the chart above shows, Navios Maritime Holdings (NM) and Navios Maritime Partners LP (NMM) have outperformed other peers such as DryShips Inc. (DRYS), Diana Shipping Inc. (DSX), and Safe Bulkers, Inc. (SB) in the past. While several fundamental differences between these companies are factors that led to such outperformance, we can’t rule out management.
Amongst Navios Group’s management team, Angeliki Frangou, who is the largest shareholder, stands out. Angeliki Frangou has been the Chairwoman and CEO of Navios Maritime Holdings Inc. for almost nine years now. Plus, Frangou has been the Chairwoman and Chief Executive Officer of Navios Partners since its inception. Frangou has received a bachelor’s degree in mechanical engineering from Fairleigh Dickinson University (summa cum laude) and a master’s degree in mechanical engineering from Columbia University.
Frangou is the Chairwoman of IRF European Finance Investments Ltd., listed on the SFM of the London Stock Exchange. She is also a member of the Board of the United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Limited, Vice Chairwoman of China Classification Society Mediterranean Committee, a member of the International General Committee and of the Hellenic and Black Sea Committee of Bureau Veritas, as well as a member of Greek Committee of Nippon KaijiKyokai.
With a major responsibility of establishing strategy and managing the team of seasoned executives who supervise global activities, Frangou also spends a significant amount of time cultivating new and existing commercial relationships with financial institutions, industrial partners, and shipyards. Her close association with banks and industry organizations, and having worked as a trader in the past, are valuable assets that would help Navios grow and maneuver ups and downs of the shipping cycles.