Zac Hirzel‘s Hirzel Capital Management, has slightly increased its exposure at Aeropostale Inc (NYSE:ARO). The fund currently holds around 4.7 million shares of the company, versus 4.5 reported at the end of last week. At the same time, the percentage of the outstanding common stock held by Hirzel edged up to 6.0%, from 5.7%. Another thing that we should mention is that Hirzel has changed the nature of his position from passive to active, which could mean that the fund is planning to get involved in the company’s activity.

Hirzel’s activist intentions are actually revealed in the filing as well. The fund states that it plans to enter into some discussions with Aeropostale’s management. The shares have been bought under the consideration that they are undervalued. Hirzel however does not reveal his plans regarding the company yet, so we should keep our eyes on the story as it is developing.

The stock of apparel retailer Aeropostale has been declining and is down by over 20% since the beginning of the year. The company has not yet provided its financial results for the third quarter, however, in the second quarter, its net sales fell by 6% on the year to $454 million. Aeropostale posted a net loss of $33.7 million in the second quarter, and the forecast for the third quarter does not look very optimistic as well. The company expects a net loss between $0.21 and $0.26 per diluted share, which is a huge slump from a profit of $0.31 per share in the same period of last year.

Among other hedge funds that we track, several disclosed holding shares of Aeropostale. Matt Sirovich and Jeremy Mindich’s Scopia Capital held over 4.9 million shares, according to our database, followed by Patrick Mccormack’s Tiger Consumer Management, and Eminence Capital, managed by Ricky Sandler with 3.6 million shares, and 3.0 million shares respectively.

Disclosure: none

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Privet Fund Reports Upping Position in StarTek

Jeffrey Jacobs Change His Mind Regarding MTR Gaming Group – Eldorado Resorts Merger

Hedge Fund News: Bill Ackman, David Shaw & Steve Cohen's Trial

According to a newly amended filing with the Securities and Exchange Commission, Privet Fund, managed by Ryan Levenson, has slightly increased its position in StarTek, Inc. (NYSE:SRT). The fund now holds over 1.3 million shares of the company, up from 1.1 million held before. The stake’s value amounts to $8.4 million, at the current stock price of the company, and it amasses 8.5% of the company’s outstanding common stock.

StarTek is involved in helping its clients with outsourcing some of their business processes with over 10,000 employees. Since outsourcing is gaining more and more value, StarTek has also been experiencing growth. The stock of the company has been up by 50% since the beginning of the year. In the third quarter, StarTek posted a 22.6% growth in its revenues in year-on-year terms, which totaled $58.4 million. The gross margin slightly fell to 11.2%, from 12.8%. At the same time, the company expanded its net loss to $1.8 million, from $1.2 million in the same period of last year. However, since the beginning of the year, until September, the net loss of the company was significantly reduced to $5.4 million, from $11.6 million in the first 9 months of 2012.

Earlier this year, StarTek bought Ideal Dialogue, a company engaged in solutions for improving customers’ experience for companies. The acquired company is considered a separate division of StarTek.

Several hedge funds out of those we track disclosed holding shares of StarTek. However, the largest position is held by Renaissance Technologies, managed by Jim Simons, which holds 361,700 shares. Ken Griffin‘s Citadel Investment Group, and Peak6 Capital Management, led by Matthew Hulsizer hold much significant stakes.

Disclosure: none

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Jeffrey Jacobs Change His Mind Regarding MTR Gaming Group – Eldorado Resorts Merger

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Kevin Michael Ulrich's Anchorage Advisors Buys Some Shares of Post-IPO Houghton Mifflin Harcourt Co.

Is BlackBerry Ltd (NASDAQ:BBRY) all dead or not? The stock hit a 52 week low during today trading. While the troubled mobile phone maker Nokia Corporation (ADR) (NYSE:NOK) sold out its handset division to get rid of loss making business and realign the 'core business' within the remaining Nokia group; BlackBerry Ltd (NASDAQ:BBRY) is yet exploring its survival strategy, but now it has some direction.

The Canada-based troubled smartphone maker could neither auction itself during the lengthened showcase period, nor go private in a deal made by a group led by its top investor. The alleged buyout offer by Chinese phone maker Lenovo Group was hurdled by the local government. Shattered by all, BlackBerry Ltd (NASDAQ:BBRY) decided not to sell itself and took on more debt to stay in the game.

Layoff: The Key to Survival

BlackBerry Ltd (NASDAQ:BBRY) has planned to lay off some 40% of its staff by cutting 4,500 jobs over a period. As a part of the layoff plan, the company yesterday announced that it will lay off 250 employees at its headquarter in Waterloo, Ontario, raising the total number of fired people at its main office to around 850 just within a few weeks.

Alongside, the company also released a statement recognizing the hard work of local employees and difficulty of layoff news and expressed that BlackBerry would do everything possible to treat its employees with compassion.

Lay-off Affects Company's PR

Despite the large number of layoffs, it is not much discussed that who are actually being fired from the company. But one department is really feeling the heat and it is BlackBerry Ltd (NASDAQ:BBRY)'s Public Relations department which is understaffed and is feeling much pressure to deal with the work. Though the layoffs are planned part of the company's cost saving measures and broader turnaround strategy, the PR department feels the heat every time it has to craft job cut statements.

The Class Action Lawsuit

Earlier this month several law firms also announced a class action lawsuit against BlackBerry Ltd (NASDAQ: BBRY) for the class period defined between September 27, 2012 and September 20, 2013. The lawsuit alleges Blackberry for issuing misleading or false statements concerning the company's business and operation including the company's announcement regarding the new BlackBerry Ltd (NASDAQ:BBRY) 10 smart phones, which were poorly received by the market. The lawsuit also alleges that the company failed to inform the investors that it was not on the road to recovery.

Disclosure: none

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Microsoft Corporation (NASDAQ:MSFT)’s stock price has climbed this year, up nearly 44 percent. Outside of that happy news, though, things have been a bit odd at the company, with the coup to overthrow CEO Steve Ballmer and all.

Amidst the shake-up, though, the company’s 2011 decision to purchase Skype has stood out as a significant bright spot.

Now, the company is letting Microsoft Corporation (NASDAQ:MSFT) know just how bright a spot they have been.

Said Karlheinz Wurm, General Manager of Product and Test for Skype, ”Skype has very positively influenced the rest of Microsoft with this freshness, with this different way of thinking.”

In an interview with TechRadar, Wurm also stated, “Skype has been very consumer-focused while Microsoft in the past ten years has been focusing on both but, for sure, very heavily targeting enterprise.”

So, Mr. Wurm’s advice to Microsoft Corporation (NASDAQ:MSFT)? Focus on enterprise and the consumer. It seems Wurm saw the Redmond, WA company as being concerned about product and maintaining flagships such as Office first and listening to consumers second. He views Skype’s cross-platform utility and integration as a good thing for the company, who has long resisted such technologies as cloud computing and a non-subscription based software model.

Concern has begun to percolate about the place of Skype in the new world order at Microsoft. Wurm, for his part, doesn’t seem too concerned about being marginalized by the company.

And while Wurm and company are on board with the One Microsoft initiative, he doesn’t see Skype moving to Redmond any time soon.

“Would Skype move to Redmond? Would Skype stop shipping cross platform? These are the very things people might think of… it’s just no to everything.”

Microsoft Corporation (NASDAQ:MSFT) can assuredly learn certain things from Skype’s willingness to embrace consumer wants, as well as the platforms adaptability. What began as a desktop application for placing VoIP calls has developed into a social sharing service that can be used on devices as varies as the Xbox, Television, and iPod.

Microsoft could likely take a cue from Skype’s innovative “Rerouted”  campaign.

Disclosure: none

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Apple Inc. (NASDAQ: AAPL) has been dominating the PC market ever since its MacBook appeared. That was 7 and a half years ago and since then, Apple's market share has grown by an astonishing 150%, simply blazing through the competition and for the most part landing on its feet. By now, pretty much everyone knows their secret to success: sleek designs with technological innovation, and a systematic distinction from the PC crowd. But the Mac sales which once considerably outgrew the industry, have been slowly climbing back down the success stairs and are almost touching the ground.

So, what is happening with Mac sales and more importantly, does Apple's CEO Tim Cook even care?

When you're up, you can always come down

Part of Apple Inc. (NASDAQ:AAPL)'s confidence as a tech company comes from its constant and steady sales, which in barely 8 years accomplished a 272% revenue increase. Now, this doesn't mean that Apple is untouchable market-wise. Indeed, I'm sure most of you will remember the 22% drop in sales back in 2011 when our tech favourite failed to deliver enough of the newest iMacs to meet our demand. Well, Apple sure felt the heat, but it didn't even sweat. Because by 2011 we already had the options of acquiring iPads, in order to substitute our immediate Mac needs.

Halos never fade

Now to get some perspective, let's see how Apple Inc. (NASDAQ:AAPL) is looking on the market. The Mac sales have generated $21.5 billion in income, which represents 13% of all Apple sales. Also, Mac cashes out big in the overall PC market, where Apple's profits take nearly half the cake. However, the bigger issue is the 20% drop in Mac sales that the tech giant has been exposed to. According to Charlie Wolf of Needham & Co, this is due to the fading halo effect. This means that Apple Inc. (NASDAQ: AAPL) once benefited from Windows users, who discovered the Apple Store through the iPod, iPhone or iPad, but now the thrill is now gone. The iPad dominance is probably causing customers to come into the shop wanting a Mac, and leaving with a new iPad air instead.

Prices lead the market

So, if iPad sales are replacing Mac sales, instead of impacting PC sales, wouldn't that just leave Apple Inc. (NASDAQ: AAPL) more room to play on the phone and tablet market? Maybe, but then sales will still be a question of price. While Mac's are cheaper today than ever, they've become much pricier than average PC's. And this would affect the overall revenue, if it weren't for Apple's intangible asset: its brand name. So even if prices keep rising, like with the iPhone 6, Apple fans are bound to still buy the products because of what they represent.

Disclosure: none

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Jeffrey P. Jacobs, Chairman and CEO of Jacobs Investments has withdrawn his proposal of merger between his company and MTR Gaming Group, Inc. (NASDAQ:MNTG), a filing with the Securities and Exchange Commission revealed. Instead of that, Jacobs signed a Support Agreement with Eldorado Resorts. The agreement was accepted in exchange for Eldorado raising its proposal to acquire MTR for $6.05 per share, instead of $5.15 offered previously. Eldorado also agreed to increase the cash portion, that will be paid to MTR stockholders in the merger process, to $35 million, from $30 million.

In this way, Jacobs, who holds around 5.1 million shares of the company (which represent over 18% of the company), has agreed to vote in favor of the merger between Eldorado and MTR. Jacobs has been negotiating the merger with MTR Gaming, for some time before giving up. At the beginning of October, Jeffrey Jacobs offered to sell Jacobs Entertainment to MTR, stating that it will provide more value for MTR shareholders, in comparison with the merger proposal issued at that time by Eldorado. Later Jacobs urged the board again to support his proposition, claiming that shareholders of MTR will receive $30 million from the deal he offeres, instead of just below $25 million from the merger with Eldorado.

The board of MTR entered into an agreement and plan of merger with Eldorado in September.

Disclosure: none

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Kevin Michael Ulrich's Anchorage Advisors Buys Some Shares of Post-IPO Houghton Mifflin Harcourt Co.

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Over the last week, insiders at two small-cap advertising companies, Tremor Video Inc (NYSE:TRMR) and Millennial Media, Inc. (NYSE:MM), have been eating up their stock. Since insider purchases reflect, on many occasions, high levels of insider confidence, the transactions and companies deserve a closer look, in order to elucidate if they stand as interesting investment opportunities.

Tremor Video

Tremor Video Inc (NYSE:TRMR) is a provider of video advertising solutions across diverse internet-connected devices. On the days that followed the company's 10Q filing, on Nov. 14^th, eight Form 4s were presented at the U.S. Securities and Exchange Commission. Six different insiders purchased stock from the firm, including its President and CEO, C William Day, who acquired 15,000 shares in a few days, at prices between $3.69 and $3.90 per share. Stock trades at around $4.20 currently, already providing a considerable upside for these insiders.

Most of them are probably betting on growth, since the company’s current margins and returns are not yet positive. With most price targets above $8 a piece, it seems like an attractive entry point is open.

Millennial Media

Millennial Media, Inc. (NYSE:MM) is a mobile advertising platform company. After it filed its 10Q report at the SEC, six insiders purchased its stock. Amongst them we can find two Executive Vice Presidents and one Senior Vice President. However, the most relevant acquisition could be the one made by Millennial´s President and CEO, J. Paul Palmieri, who added 10,000 shares to the 4,786,770 that he already held. He paid an average of $5.922 per share, and his holdings now amount to approximately $30 million.­

Reasonably valued while offering an industry leading revenue growth history (over the last 3 years, at least), this stock looks like an interesting investment option, and one can understand why insiders are betting on it. Analysts are also quite bullish about Millennial Media: consensus estimates point towards average annual EPS growth rates around 45% (triple its industry average) for the next five years to come.

Hedge Fund Bulls

Interest in small-cap companies among hedge funds is quite common, mainly because their stock is more likely to be mispriced than larger-cap, more closely-followed companies. We track several small-cap stock picks among hedge funds and, on average, they widely outperformed the S&P 500.

Amongst Millennial Media, Inc. (NYSE:MM)´s largest hedge fund bulls are

• Spencer M. Waxman‘s Shannon River Fund Management, which owns 1.8 million shares
• George Soros‘ Soros Fund Management, holding 800,000 shares
• Jim Simons‘ Renaissance Technologies, with 433,400 shares

Tremor Video Inc (NYSE:TRMR), on the other hand, has a market cap slightly below $250 million, so it technically qualifies as a micro-cap company. In consequence, big hedge funds are not as interested. However, Steven Cohen's Sac Capital Advisors holds a small position in the company. This, added to the strong insider activity, provides some backup for a potential investment.

Disclosure: Javier Hasse holds no position in any stocks mentioned

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Bill Ackman’s Quiet Activist Campaign Over Fannie Mae And Freddie Mac (Forbes)
It has been about 100 hours since William Ackman revealed his Pershing Square hedge fund's nearly 10% stake in both Fannie Mae and Freddie Mac. But Ackman has not released any slide presentations telling America how the nation's mortgage market should be run. He hasn't conducted television interviews or described his investment in detail in a letter to his investors. Ackman didn't even use any explosive language in Pershing Square's Securities & Exchange Commission filing that disclosed the investment, which only said that Ackman and his hedge fund "have determined that they may engage in discussions with management, the board, other stockholders of the issuer, representatives of the federal government, and other relevant parties" about the future plans of Fannie Mae and Freddie Mac.

DE Shaw hedge fund opens new positions in FOXA, NWS, NVE, Sells S, HOG, CCL – 13F Flash (F) (Part 6) (Market Realist)
DE Shaw is a New York based $30 billion+ quantitative hedge fund founded in 1988 by David E. Shaw, a former Columbia faculty member. The firm's primary trading method is systematic and computer-driven. DE Shaw has over 1,000 employees in North America, Europe and Asia, with an international reputation for successful investing based on innovation and strong risk management. The firm started new positions in Twenty-First Century Fox Inc (NASDAQ:FOXA), News Corp (NASDAQ:NWS), NV Energy, Inc. (NYSE:NVE) and sold positions in Sprint Corporation (NYSE:S), Harley-Davidson, Inc. (NYSE:HOG), and Carnival Corporation (NYSE:CCL).

Trial of Senior SAC Capital Portfolio Manager Begins (Wall Street Journal)
As the criminal trial of senior portfolio manager Michael Steinberg begins Tuesday, his defense lawyers are hoping to find a jury that hasn’t heard about the government’s investigation into the hedge-fund giant SAC Capital Advisors LP or its founder Steven A. Cohen. Prosecutors and defense lawyers were expected to start questioning jurors starting Tuesday morning. The number of prospective jurors was larger than typical cases because of the publicity concerns. Mr. Steinberg, who has pleaded not guilty, is the most senior employee at SAC to be indicted for insider trading and is accused of making illegal trades in 2008 and 2009 in shares of technology companies Dell Inc. (NASDAQ:DELL) and NVIDIA Corporation (NASDAQ:NVDA).

Are Hedge Funds Still Betting on Gold? (Wall St. Cheat Sheet)
Billionaire fund manager John Paulson is known for betting against subprime mortgages during the housing bubble, but he is also a vocal advocate for gold. Last year, he said in a letter to investors, "By the time inflation becomes evident, gold will probably have moved, which implies that now is the time to build a position in gold." He reaffirmed his belief that gold is a good hedge against inflation over the summer and added exposure to at least one gold miner by the end of the third quarter. As of September 30, his firm, Paulson & Co., held 10.2 million shares of the SPDR Gold Trust (ETF) (NYSEARCA:GLD) — the most popular exchange-traded gold product in the market.

Mario Gabelli, GAMCO Investors Increase Stakes in The Bon-Ton Stores & Ingles Markets (Insider Monkey)
Mario Gabelli and his fund GAMCO Investors, reported in a couple of filings with the Securities and Exchange Commission some bullish moves made into their holdings in The Bon-Ton Stores, Inc. (NASDAQ:BONT), and Ingles Markets, Incorporated (NASDAQ:IMKTA). In The Bon-Ton Stores, GAMCO and Gabelli increased its exposure to over 1.2 million shares of the company, which are equal to 6.94% of the outstanding common stock of the company. Out of this position, GAMCO holds 637,397 shares, which represent an increase from 626,500 disclosed by the fund in its latest 13F.

Icahn didn’t say anything new: Pro (CNBC.com)

In a recent Form 4 filed with the Securities and Exchange Commission, Anchorage Advisors, led by Kevin Michael Ulrich, disclosed buying some shares of Houghton Mifflin Harcourt Co. (NASDAQ:HMHC). The fund purchased 72,818 shares in one transaction, the price amounting to $14.00 apiece. Following the addition of new shares, Anchorage via its affiliates holds around 17.5 million shares.

Houghton Mifflin Harcourt is a company engaged in publishing textbooks. A couple of days ago the company went public and offered for sale almost 18.3 million shares, which have been initially priced at between $14 and $16 apiece, but the final IPO price amounted to $12 per share. The shares in the IPO have been sold by the stockholders of the company, so Houghton Mifflin did not receive any gains from the IPO.

According to the S-1 form filed by the company, Anchorage was one of the largest stockholders of the company before its IPO. With a holding of 7.8 million shares, Anchorage owned 11.2% of the company’s common stock. The hedge fund with the largest stake was John Paulson‘s Paulson & Co., which trough its affiliates held almost 18.2 million shares, equal to 26% of the stock.

Earlier in 2012, Houghton Mifflin Harcourt filed for bankruptcy and entered into a plan of restructuring. The company emerged from bankruptcy later that year, and the shareholders of the company for their existing equity received warrants for new equity in the company.

Anchorage is a hedge fund with a focus on credit and special situations. It invests in various distressed opportunities and use the long/short and fundamentals-driven strategies for seeking investment opportunities. The largest stocks in the equity portfolio of the fund, according to its latest 13F filing are Central Pacific Financial Corp. (NYSE:CPF), with a holding which amasses almost 9.5 million shares; American International Group Inc (NYSE:AIG), and Synovus Financial Corp. (NYSE:SNV), in which the fund holds 2.3 million and 32.8 million shares respectively.

Disclosure: none

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Viva la Tele! Luxor Capital Group Bets on Hemisphere Media Group

Mario Gabelli, GAMCO Investors Increase Stakes in The Bon-Ton Stores & Ingles Markets

Prescott Group Capital Management Adds to Stake in China Marine Food Group Again

Christian Leone‘s fund, Luxor Capital Group, recently disclosed that it added shares of Hemisphere Media Group Inc (NASDAQ:HMTV) to its portfolio, increasing its position by around 1.47 million class A shares. A couple of weeks ago, Luxor reported increasing its position in Hemisphere to 4.55 million common shares, representing 37.7% of the common stock. After the last reported transaction, its stake reaches 39.1% of the stock.

 About the Fund

New York-based Luxor Capital Group manages about $7 billion in assets, with holdings in equity and fixed income investments throughout the world. Within the equity market, more than half its stakes are placed on ETFs. Its picks are usually value-oriented; however, distressed companies also pick its attention quite often.

The hedge fund has been quite active lately. Less than two months ago, it added Searchlight Minerals Corp. (OTCMKTS:SRCH) to its equity portfolio, increasing its stake to 20.9% of the stock. Since the company is currently in its exploration stage, it has been posting substantial losses. Consequently, it stands as living proof of Leone's interest for troubled companies.

Its recent 13F filing also reveals that the fund acquired at least 15 new positions during this year´s third quarter.  It´s biggest purchase was Cole Real Estate Investments Inc (NYSE:COLE), on which it spent almost $200 million.

During Q3, Luxor also placed very big bets on cellphone carriers: it bought 4.589 million shares of Vodafone Group Plc (ADR) (NASDAQ:VOD), worth more than $171 million, and 3.2 million shares of Verizon Communications Inc. (NYSE:VZ), valued at approximately $162 million.

On the contrary, it sold out major stakes in media companies. Its biggest sale was its News Corp (NASDAQ:NWS) stock, but it also slashed its Tiger Media Inc. shares. In this line, Hemisphere Media Group Inc (NASDAQ:HMTV) could come as a replacement for the aforementioned investments.

Viva la Tele!

Hemisphere Media Group is a pure play U.S. Hispanic TV, cable networks, and content platform. Although its stock valuation seems slightly expensive, given the fact that the company is in a development stage, its expected to triple-digit EPS growth for next year, the high EBITDA margin of approximately 46% and strong EBITDA growth make it worth its price. As John Leonard explains at SeekingAlpha, "HMTV is at the intersection of three secular trends: a rising Hispanic population, increasing Hispanic pay-TV subscription growth and higher advertising rates." In this context, Luxor´s investment in Hemisphere Media Group Inc (NASDAQ:HMTV) seems quite easy to understand.

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Mario Gabelli, GAMCO Investors Increase Stakes in The Bon-Ton Stores & Ingles Markets

Prescott Group Capital Management Adds to Stake in China Marine Food Group Again

Mohnish Pabrai, Dalal Street Buy Some More Horshead Holding Corp. Shares

Mario Gabelli and his fund GAMCO Investors, reported in a couple of filings with the Securities and Exchange Commission some bullish moves made into their holdings in The Bon-Ton Stores, Inc. (NASDAQ:BONT), and Ingles Markets, Incorporated (NASDAQ:IMKTA). In The Bon-Ton Stores, GAMCO and Gabelli increased its exposure to over 1.2 million shares of the company, which are equal to 6.94% of the outstanding common stock of the company.

Out of this position, GAMCO holds 637,397 shares, which represent an increase from 626,500 disclosed by the fund in its latest 13F.

In a separate filing, GAMCO disclosed a major stake in Ingles Markets. Mario Gabelli holds more than 2.6 million shares of the company, the stake amassing 19.74% of the company’s common stock. GAMCO’s share of the aggregate stake amounts to around 1.43 million shares. In the latest 13F, GAMCO disclosed holding slightly below 1.4 million shares of the company.

The stocks of both companies have gained momentum since the beginning of the year. However, while The Bon-Ton Stores’ share price increased by just over 5% since the beginning of the year, Ingles Markets’ stock experienced a boost of over 48%.

In addition to GAMCO, Jacob Gottlieb’s Visium Asset Management, and D. E. Shaw’s D E Shaw are also listed among The Bon-Ton Stores’ shareholders. They hold 156,771 shares, and 112,398 shares, according to our database, so their stakes are much less significant in comparison with Gabelli’s.

In Ingles Markets, Jim Simons’ Renaissance Technologies, and Ken Griffin’s Citadel Investment Group also hold stakes, their positions containing 61,574 shares, and 26,162 shares respectively.

Mario Gabelli and GAMCO have been always active in terms of reporting moves into their holdings. Among the major recent moves, we can mention Gabelli’s boost of its position in Edgen Group Inc (NYSE:EDG), in which he now holds 1.45 million shares. Also in Cablevision Systems Corporation (NYSE:CVC), Mr. Gabelli added around 10 million shares, upping the stake to a total of some 21 million shares.

Disclosure: none

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Phil Frohlich‘s Prescott Group Capital Management reported in a new filing with the SEC, that it has purchased some more shares of China Marine Food Group Ltd (OTCMKTS:CMFO), as it has been doing for some time now. In the new round of purchase of China Marine Food Group shares, Prescott acquired 34,667 shares, the price varying between $0.19 and $0.23 per share for each of the five transactions.

China Marina Food Group is currently trading on the OTC Pink Market, moving from the NYSEMKT where it traded previously. The company has decided to delist from NYSEMKT earlier, and at the beginning of the month the company filed the required forms with the Securities and Exchange Commission, which confirmed its volunteer delisting and deregestiring from Section 12(b) of the Exchange
Act.

This move made by China Marine Food Group comes as a solution meant to reduce operational costs of the company, since it will no longer be liable for reporting with the Securities and Exchange Commission. The company also plans to focus more on gaining long-term value instead of focusing on short-term issues related to its market value.

Prescott with its focus on small- and mid-sized companies is the largest hedge fund invested in China Marine Food Group so far, according to our records. Aside from it, Renaissance Technologies, led by Jim Simons is also bullish on the company, however, his position is insignificant in comparison with its whole equity portfolio and the stock held by Prescott.

In addition to China Marine Food Group, Prescott also recently disclosed a move made into PharmAthene, Inc. (NYSEMKT:PIP). Prescott holds an activist stake in the company, equal to 10% of the outstanding stock. Since holders of activist stakes tend to take a brush stroke to the company’s management, Frohlich is no exception to the rule, and recently asked for shareholders of the company to meet and discuss some important issues related to the company.

Disclosure: none

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Dalal Street, the fund managed by Mohnish Pabrai, disclosed, in a new filing with the SEC, buying some more shares of HORSEHEAD HOLDING CORP. (NASDAQ:ZINC). According to the filing, Dalal Street purchased in total 248,575 shares of the company, raising its holding to almost 6.3 million shares. The additional shares have been acquired in three transactions, the average price amounting to $13.99 apiece.

Mohnish Pabrai’s fund has been bullish on Horsehead Holding for some time now. Just a couple of weeks ago, the fund disclosed buying some other 327,000 shares of the company. However, in those deals, the price has been a bit lower, at $12.00 and $12.75 per share.

Horsehead is engaged in production of zinc and nickel-based products, with main markets in North America. The stock of the company already gained over 38% since the beginning of the year, and trails a forward P/E ratio of 18.7. At the end of October, the company conducted a public offering in which it sold 5.5 million shares of common stock for $12.00 apiece, plus additional 825,000 shares offered for underwriters. The net proceeds from the offering amounted to over $72 million.

For the previous quarter, Horshead posted a net loss of $3.5 million, equal to $0.08 per diluted share. The company managed to narrow its net loss over the year, from $9.1 million in the same period of 2012. The company is also finishing the building of its zinc production facility in North Carolina, and plans to begin production by the end of 2013. In terms of EBITDA, the company plans to gain between $90 and $110 million. The total costs of the project are situated at around $490 million. Aside from that, Horshead is expanding another its facility, the project coinciding with the closure of its Monaca zinc oxide refinery planned for the end of the year.

Chuck Royce’s hedge fund Royce & Associates also reported holding shares of Horsehead Holding. Its stake amasses around 4.5 million shares.

Disclosure: none

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Hedge Funds Watching these 5 Gold Mining Stocks if the Dollar Falls

If you want to get a general understanding of what’s happening with a company’s stock, you should try and see who owns a piece of it. The best way of doing this is by examining the 13F filings of reputable investment managers to see what they own. As required by law, any fund manager who is registered with the Securities and Exchange Commission (SEC) must report, on a quarterly basis, what their holdings consist of.

Utilizing this strategy, the Foolish investor would have stumbled upon the fact that David Tepper’s Appaloosa Management, a $6.3 billion hedge fund, recently bought shares of J.C. Penney . Since inception, Appaloosa has earned an annualized return of approximately 30%, so it goes without saying that when he speaks, the market listens. This proved true yet again when, on last Friday, shares of J.C. Penney rose 3.9% on news of the investment.

The bad
For shareholders, this should be a cause to celebrate as it shows that one of the best-performing hedge fund managers of the past two decades believes that it could be a turnaround opportunity capable of yielding sufficiently high returns. But, is it possible that Mr. Market is overhyping the situation a bit, especially given the fact that Tepper only acquired $6.5 million (or 0.1% of his fund’s worth) of stock?

Over the past few years, J.C. Penney has not been an ideal investment. From the company’s 2012 fiscal year to its 2013 fiscal year, sales fell by 24.8% from $17.26 billion to $13 billion. Net income also fell precipitously, going from a gain of $572 million five years ago to -$985 million as of its most recent fiscal year.

Year-to-date, the picture has gotten progressively worse. In the company’s second quarter of this year, revenue fell 11.9% from $3.02 billion to $2.66 billion. Meanwhile, its net loss widened as costs have risen relative to revenue, causing the company to report net income of -$586 million this quarter compared to -$147 million in the same quarter a year ago.

The good
On the flip side of things, there is some good news that has surfaced about J.C. Penney over the past couple months. In September, sales declined less than expected, while in October, the company saw sales rise by 1%. This represents the first sales increase since 2011. To make matters even better, its online sales rose an astonishing 37% compared to the same period a year ago.

With the thought in mind that J.C. Penney might be an attractive target, four other notable hedge funds bought, in aggregate, 8.1 million shares over the past quarter, while two other funds sold 7.43 million shares in aggregate. George Soros, who himself owns 19.98 million shares of the retailer, kept his holdings unchanged.

And the cautious
However, we should be mindful that just because an investor buys into shares of something, it does not mean that those shares are truly undervalued. Bill Ackman, a manager of a multi-billion dollar hedge fund, purchased around 40 million shares of J.C. Penney at approximately $25 (ouch!) and decided to sell off at a nearly $500 million loss this past quarter.

Another under performing investment by Ackman was Herbalife , a multilevel marketing firm that he alleges is set up as a pyramid scheme. After presenting his claim that the company is fraudulent, and admitting that his firm was short the company in the amount of $1 billion, investors like Carl Icahn and George Soros piled into the stock. This pushed the company’s share price up 185% from its 52-week high and created a short squeeze that caused Ackman to restructure his investment and mitigate losses moving forward.

Foolish takeaway
Currently, shares of J.C. Penney are trading at about $9, which implies that they are monetarily cheap on a historical basis. However, the company is difficult to value because of its substantial drop in profitability. Naturally, this is bad for investors, but the rather big moves by big-name firms into the stock implies that there may be significant upside for anyone with the patience to wait everything out. This is, nevertheless, promising, but the important thing to focus on is the company’s fundamentals, when it reports earnings this Wednesday.

The article Did Mr. Market Overreact to David Tepper’s Acquisition of J.C. Penney? originally appeared on Fool.com.

Daniel Jones has no position in any stocks mentioned. The Motley Fool has the following options: long January 2015 $50 calls on Herbalife Ltd. (NYSE:HLF).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Every quarter, many money managers have to disclose what they’ve bought and sold via “13F” filings. Their latest moves can shine a bright light on smart stock picks.

Today let’s look at investing giant John Paulson, founder and president of Paulson & Co. Established in 1994 and owned by its employees, Paulson & Co. has specialized in merger arbitrage among other things, profiting when one company buys or merges with another (or merely announces plans to do so). It has grown into one of the largest hedge fund companies in the world.

Is Paulson really worth paying attention to, though? Well, according to the folks at GuruFocus.com, Paulson’s portfolio gained about 264% over the 15 years through 2011, compared with just 124% for the S&P 500. That certainly gets my attention. His performance has faltered in recent years, though, in part due to his heavy position in gold — gold has long had its advocates and critics (who include Warren Buffett), but as my colleague Dan Caplinger has noted, it all comes down to supply and demand. Paulson has reportedly said that a handful of his big funds are up by double digits several quarters into the year, with his Recovery and Enhanced funds up 38% and 26%, respectively.

The company’s reportable stock portfolio totaled $15.5 billion in value as of Sept. 30, 2013.

Interesting developments
So what does Paulson’s latest quarterly 13F filing tell us? Here are a few interesting details.

The biggest new holdings are Time Warner Cable and Mallinckrodt. Other new holdings of interest include FedEx (NYSE:FDX) , which is up more than 60% over the past year and near a 52-week high, yielding 0.4%. The company was whacked by our recent recession, resulting in shrinking profit margins and, ultimately, a big turnaround plan involving cost-cutting, among other measures. The plan seems to be working well, as FedEx’s last quarter featured estimate-topping revenue up 2% and earnings up 5.5%, also exceeding expectations. FedEx has announced plans to reward shareholders by buying back as much as about 10% of its shares.

Among holdings in which Paulson & Co. increased its stake were Kodiak Oil & Gas (NYSE:KOG) and Vodafone . Kodiak Oil & Gas is one of the fastest-growing companies in shale drilling. Its recent quarterly earnings report disappointed some investors, but you can make a good case that they overreacted, given the 167% increase in revenue. Despite Kodiak Oil & Gas’ hefty debt load, bulls like its focus on efficiency and see it having considerable promise.

Vodafone, headquartered in the U.K., yields a whopping 5.5%. Vodafone is collecting some $130 billion from Verizon for its 45% stake in Verizon Wireless, which will be used to reward shareholders, to beef up its wireless business, and to help fund its growth abroad. Meanwhile, there has been some talk of AT&T possibly buying Vodafone. Some have been concerned about Vodafone’s free cash flow and see more compelling dividends elsewhere, but others see it as appealingly valued.

Paulson & Co. reduced its stake in lots of companies, including InterOil (NYSE:IOC) . InterOil has many investors excited about its potential, as it has major natural gas holdings in Papua New Guinea that could serve regions in Asia. It recently posted quarterly results that were somewhat disappointing, but investors still sent InterOil’s shares up about 20% on news that it’s getting close to some big deals, likely with ExxonMobil, and that its New Guinea operations are progressing as well.

Finally, Paulson’s biggest closed positions included Smithfield Foods and Mead Johnson Nutrition. Other closed positions of interest include Ireland-based biotech company Elan (NYSE:ELN) , which collects royalties from the multiple-sclerosis drug Tysabri. Elan is being bought by Michigan-based drug company Perrigo. One benefit for Perrigo will be headquartering the new company in Ireland, which will cut its tax rate significantly. Elan had previously been pursued by Royalty Pharma, whose offers had been deemed too low. It has also been in the news as a stock that investors at the scandal-ridden hedge fund SAC Capital allegedly traded in with insider information. The Perrigo purchase is expected to close by year-end.

We should never blindly copy any investor’s moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. 13F forms can be great places to find intriguing candidates for our portfolios.

The article Here’s What Influential Billionaire John Paulson Has Been Buying originally appeared on Fool.com.

Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Verizon Communications. The Motley Fool recommends FedEx and Vodafone.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Some hedge funds expect a falling dollar and rising gold prices. Could gold mining stocks benefit?

One of the most common questions on the minds of individual investors and hedge fund managers alike is, when will the US treasury start its tapering? In other words when will the Fed start to lease the markets off of its quantitative easing - the easy money that’s been boosting credit markets and staving off another recession.

And many investors are considering the ways in which tapering could affect the dollar relative to the price of gold. The two trade inversely – when people are bearish on the dollar they put their money into other markets, gold in particular - and when they are bullish on the dollar the price of gold often goes down.

The Senate finance committee is expected to goad a more finite answer from the next Fed Chair, Janet Yellen this Thursday regarding when tapering will commence: estimates ranged from anywhere between this past September through the next year. As explained in the video by our friends at Hedgeye, constant speculation about the timing and intensity of tapering have led to a lot of volatility, including in the gold markets:

Source: Hedgeye

If the dollar falls, which Hedgeye’s analysts suspect it will, that could lead to a long term spike in the value of gold.

Investing ideas

Now, while many factors can influence the success of a particular mining stock - one of the major factors impacting their business is the global price for whatever metals they pull out of the ground. Typically, higher prices for firms that sell raw materials can lead to bigger profits.

We decided to look for mining stocks that would benefit from higher gold prices, should Hedgeye’s analysis prove correct. Beginning our screen with the roughly seventy companies that sell or mine gold, we looked for those experiencing spikes in institutional buying. When hedge funds, mutual funds, and other financial institutions are buying more of company’s stock, it is generally because those institutions expect the stock to perform well.

We were left with five gold mining stocks on our list.

Click on the interactive chart to view market capitalization over time. 

​

Do you see investing opportunities in these gold mining stocks? Use the interactive list below to begin your analysis.

1. Allied Nevada Gold Corp. (ANV, Earnings, Analysts, Financials): Engages in the evaluation, acquisition, exploration, and advancement of gold exploration and development projects in the state of Nevada. Market cap at $375.17M, most recent closing price at $3.86.

Net institutional purchases in the current quarter at 8.9M shares, which represents about 9.26% of the company’s float of 96.08M shares.

Major Holders: Wellington Management Company, LLP (13.93%); Van Eck Associates Corporation (8.26%).
2. Banro Corporation (USA) (BAA, Earnings, Analysts, Financials): Engages in the acquisition, exploration, and development of gold properties in the Democratic Republic of the Congo (DRC). Market cap at $193.03M, most recent closing price at $0.81.

Net institutional purchases in the current quarter at 24.9M shares, which represents about 9.97% of the company’s float of 249.72M shares.

Major Holders: I.G. Investment Management, Ltd (8.95%); Tradewinds Global Investors, LLC (8.2%).
3. Compania de Minas Buenaventura SAA (BVN, Earnings, Analysts, Financials): Engages in the exploration, mining, processing, and development of gold, silver, and other metals in Peru. Market cap at $3.58B, most recent closing price at $14.07.

Net institutional purchases in the current quarter at 13.0M shares, which represents about 5.95% of the company’s float of 218.64M shares.

Major Holders: Van Eck Associates Corporation (6.73%); Vontobel Asset Management, Inc. (4.92%).
4. Kinross Gold Corporation (USA) (KGC, Earnings, Analysts, Financials): Engages in mining and processing gold ores. Market cap at $5.58B, most recent closing price at $4.89.

Net institutional purchases in the current quarter at 82.8M shares, which represents about 7.26% of the company’s float of 1.14B shares.

Major Holders: First Eagle Investment Management, LLC (5.44%); Van Eck Associates Corporation (5.08%).
5. Comstock Mining, Inc. (LODE, Earnings, Analysts, Financials): Operates as a precious metals mining company in North America. Market cap at $111.33M, most recent closing price at $1.74.

Net institutional purchases in the current quarter at 3.5M shares, which represents about 5.49% of the company’s float of 63.78M shares.

Major Holders: Van den Berg Management Inc, dba Century Management (10.21%); U.S. Global Investors, Inc. (3.11%).

(List compiled by James Dennin. Market capitalization sourced from Zacks Investment Research, all other data sourced from Finviz.)

Berkshire Hathaway (NYSE:BRK.A) recently disclosed its most up-to-date stock holdings, and the company run by Warren Buffett has recently bought even more stock in one big bank.

While many people know of Berkshire Hathaway’s $19.1 billion position in Wells Fargo (NYSE:WFC) , some may be surprised to see that Buffett has been steadily adding to his holding of US Bancorp (NYSE:USB) over the past year:

Source: Company SEC filings.

While the biggest gain in position came between the first and second quarter of this year — it is interesting to note that Berkshire Hathaway has added small incremental gains with each passing quarter. Compare that to Wells Fargo, where Buffett added a sizable position between the first and second quarter of this year, but otherwise his position has remained relatively stable:

Source: Company SEC filings.

Since Buffett and Berkshire Hathaway have clearly shown greater affinity for Wells Fargo, where the value of the shares held is roughly six times higher, it is certainly interesting to see the continual purchases of US Bancorp shares:

Source: Company SEC filings.

While it would be easy to say the roughly $70 million in share purchases is inconsequential, when you consider that Buffett only added to his position in only four of the 42 companies that Berkshire Hathaway held in the second quarter (and one almost immaterially so), I believe this is something that shouldn’t be ignored.

Source: Company SEC filings.

So why does Buffett keep buying stock in US Bancorp? Although he comes from the Benjamin Graham school of value investing, it certainly isn’t because the bank is “cheap” relative to its peers. US Bancorp’s 3.1 price-to-tangible book value (which measures the premium investors are willing to pay relative to the actual equity on the bank’s balance sheet) is among the highest in the industry. It is also well above that of other Berkshire Hathaway positions: Wells Fargo with its 2.1 P/TBV and Bank of America (NYSE:BAC) , which checks in at 1.2. And while it has a solid dividend yield (which Buffett is also known to prefer) at 2.4%, US Bancorp isn’t at the top of the industry in that respect, either.

While I can’t speak with Buffett directly — but I’d love to have the $1.1 million needed to give to charity so I could have a lunch with him — I suspect the answer lies not because US Bancorp is cheap but simply because it’s a great business. It is unparalleled in its ability to generate returns on assets (1.65%) and equity (15.8%) while also operating as one of the most efficient banks with an efficiency ratio of 52.4%. In almost all major metrics, US Bancorp is often at the top of the industry.

So often in investing we attempt to find the next great bargain or the next off the radar stock — but in the steady stream of additional US Bancorp stock purchases, Buffett shows that he continues to invest by his old adage that “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price,” which is something we should all keep in mind.

The article Why Warren Buffett Bought More of This Bank originally appeared on Fool.com.

Fool contributor Patrick Morris owns shares of Berkshire Hathaway, Bank of America, and US Bancorp. The Motley Fool recommends and owns shares of Bank of America, Berkshire Hathaway, and Wells Fargo. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

It’s often said that the definition of insanity is doing the same thing over and over again but expecting different results. So what should we make of Royal Dutch Shell‘s decision to return to the Chukchi Sea? Is this pure folly, or is there method in Shell’s madness?

A comedy of errors
Shell’s history in the Chukchi Sea reads like a rap sheet. Shell reached a settlement with the U.S. Environmental Protection Agency this September under which the company paid out $1.1 million for violations of the Clean Air Act. EPA cited “numerous violations” of Shell’s air permits.

In a detailed report, EPA said that Shell had continued its Arctic activities despite management’s awareness of technical problems. The report also questioned the security of Shell’s post-accident oil collection and its control of air pollutant emissions, and said that the company had failed to manage its contractors.

Earlier this year, Shell suspended its Arctic offshore drilling program in the Chukchi and Beaufort Seas for the remainder of the year. While the company tried to sell this as a strategic and responsible move, the fact is that it had no choice after its Kulluk rig had run aground the previous December. A U.S. Department of the Interior inspection of Shell’s Alaskan projects revealed more than a dozen deficiencies on the Kulluk, and generally concluded that the company was not in a position to drill safely in the Arctic.

David Lawrence, the executive vice president who was directly responsible for Alaskan operations, left his position in March by “mutual consent,” according to the party line. Industry insiders speculate that Lawrence was fired, having become a scapegoat for potentially broader problems within the company.

A company of constant sorrow
Shell has had a tough time overall lately. The company’s profits declined by almost 32% in the most recent quarter. About one-fifth of its earnings vanished into thin air, due in large part to a huge writedown on its North American shale assets. Shutdowns in Shell’s Nigerian operations — which the company has botched for years — continue to cost Shell dearly. And with current CEO Peter Voser’s plans to step down by the end of this year, Shell has succession plans to consider.

Shell is not alone in its difficulties. Exxon (NYSE:XOM)Mobil , an old hand at Arctic drilling, has long clashed with environmentalists over its partnerships with Russian interests. Activist groups such as Greenpeace say that ExxonMobil’s partners, including Gazprom and Rosneft, have outdated infrastructure and pose a particular accident risk that could threaten pristine ecosystems. The ongoing case of Russia’s imprisonment of Greenpeace activists for their protests of Arctic drilling continues to shine an uncomfortable light on ExxonMobil.

Further still, Exxon also posted sharp profit declines in the third quarter, down 18% from the previous year. This was due in large part to sectorwide problems of rising costs and exploration charges. Taking all this into consideration, you might think that Shell wouldn’t be itching to follow in Exxon’s footsteps.

Where angels fear to tread
Quite the contrary, Shell has decided that this is a brilliant time to revive its Chukchi operations, which it expects to do in 2014. CFO Simon Henry characterized the Chukchi plans as “the single largest exploration prospect in the Shell Group.” Shell will have to make do without the albatross of its Kulluk rig, which the company has finally acknowledged is barely worth its value in scrap. That means another write-off in the fourth quarter of a few hundred million dollars, but, hey, who’s counting?

It all raises the question: Can Shell really concentrate hard enough on a project this important, especially given the sheer number of eyes that will be trained on the company? Regulators, environmentalists, and long-term investors will all be watching intently for the slightest slip.

Meanwhile, Shell’s challenges are daunting. According to a rich analysis in the Alaska Dispatch, several serious issues loom large.

• Because the Kulluk is toast, Shell must substitute a new drill ship, which means it needs a new exploration plan, which will require renewed approval from the Bureau of Ocean Energy Management, or BOEM.
• Shell will need new permits, not only to operate around protected marine mammals but also for air emissions. Shell and its air permits have not had a good history.
• The BOEM will be issuing new Arctic-specific rules for oil and gas activities by year’s end. We don’t know what they’ll say, but the rules are a specific response to Shell’s Kulluk fiasco.
• The U.S. Coast Guard is still pursuing its own investigation of the Kulluk calamity, and it remains possible that this will lead to further legal action.
• A pending court case questions the legality of the lease sale that allowed Shell to enter the Chukchi in the first place. A decision is due anytime now, and it’s possible that it would invalidate Shell’s lease altogether.

As if that weren’t enough, Greenpeace has now trained its guns firmly on Shell because of its association with the detained activists in Russia. The environmental organization launched a series of protests at Shell stations around the United Kingdom this past weekend, and intends to increase pressure on the company.

Cause for pessimism
Taken together, this story should be enough to give investors pause. It looks to me as though Shell is striking from a position of weakness, stretching itself entirely too thin at a time when it should be getting its house in order. Time will tell, but I think a 2014 return to the Chukchi will prove to have been a mistake.

The article 1 Way Shell Shouldn’t Emulate ExxonMobil originally appeared on Fool.com.

Sara Murphy has no position in any stocks mentioned. Follow her on Twitter @SMurphSmiles. The Motley Fool has no position in any of the stocks mentioned, either. 

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Keith Meister's Corvex Capital reported, in a newly amended filing with the SEC, stated that according to a ruling by the arbitration panel Corvex and Related Fund Management will have to nominate a new independent board of trustees for CommonWealth REIT (NYSE:CWH).

"The Arbitration Panel's decision is a tremendous victory for shareholder democracy and for all CommonWealth shareholders. With the path cleared by the Panel's decision, we firmly believe it is a foregone conclusion that shareholders will take back CommonWealth. We are heartened by the previous endorsement of the holders of more than 70% of the outstanding shares who voted to remove the entire board, as well as by ISS and Glass Lewis,” Keith Meister and Jeff T. Blau of Related stated in a press release.

The fund also reiterated that it holds 11.4 million shares in the company, from around 5.7 million disclosed in its latest 13F. The position is activist by nature, and entitles Corvex to holding 9.6% of CommonWealth’s common shares of beneficial interest. The stake is not held completely directly by Corvex. According to the filing, the holding includes around 5.7 million shares owned by Corvex and some 9.7 million shares held by an individual shareholder, David R. Johnson.

Corvex disclosed a new position in CommonWealth REIT earlier this year. In an earlier filing, the fund disclosed buying almost 10.9 million shares. Right after initiating the position, Corvex, together with Related, began their battle against the management of the company, considering that it creates conflicts of interest and is guilty of mismanagement.

According to our database, Perry Capital, managed by Richard Perry held around 7.1 million shares of CommonWealth REIT. Jeffrey Tannenbaum’s Fir Tree, and Marcato Capital Management, led by Richard Mcguire disclosed less significant positions, which contain around 4.3 million and 3.8 million shares respectively.

Disclosure: none

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Jeff Smith, Starboard Value Intend to Sell Shares of Office Depot

Brian Taylor's Pine River Capital Management Initiate Stake in Yongye International

David Einhorn, Greenlight Capital Sell 2.5 Mln Shares of Einstein Noah Restaurant Group

Jeff Smith‘s fund Starboard Value has just disclosed, in a newly amended filing with the Securities and Exchange Commission, that it intends to sell shares of Office Depot Inc (NYSE:ODP). The fund has signed a sales plan agreement letter, according to which, J.P. Morgan Securities LLC will act as the agent and sell the shares held by Starboard.

Starboard currently holds 42.1 million shares of Office Depot, the stake representing 7.9% of the outstanding common stock. The holding is one of the largest in the equity portfolio of Jeff Smith’s fund. According to the filing, Starboard’s position is activist by nature.

According to the letter, the plan is intended to be completed until the end of September, 2014. J.P. Morgan should sell shares on each trading day during the execution of the Sales Plan, unless there is a Market Disruption Event. The amount of shares that shall be sold has not been identified in the letter.

The move is meant to rebalance Starboard’s portfolio, amid  the surge of the company’s stock price since the fund first purchased the shares over a year ago, the filing stated. The stock of Office Depot has been gaining momentum, and is already up by over 64% since the beginning of the year.

In addition to Starboar, some other notable “hedgies” has also been holding shares of Office Depot. According to our database, Tig Advisors, managed by Carl Tiedemann and Michael Tiedemann, holds around 13.4 million shares, followed by D. E. Shaw‘s D E Shaw, and Barry Rosenstein‘s Jana Partners, which own some 2.5 million shares and 2.0 million shares respectively.

Last week, Jeff Smith’s fund reported slicing its exposure at another company, Emulex Corporation (NYSE:ELX). As we stated earlier, Starboard cut its stake in the company to some 5.3 million shares, equal to 5.8%, from 7.3 million shares held earlier.

Starboard is a fundamental-focused hedge fund, which invests primarily in small-cap stocks.

Disclosure: none

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Brian Taylor's Pine River Capital Management Initiate Stake in Yongye International

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