Scout Capital Discloses CST Brands (CST) Stake ~ market folly

Wednesday, May 29, 2013

Scout Capital Discloses CST Brands (CST) Stake

Adam Weiss and James Crichton's hedge fund firm Scout Capital filed a 13G with the SEC regarding shares of CST Brands (CST).  Per the filing, Scout has disclosed a 5.9% ownership stake in CST with 4,485,000 shares.

This is a brand new position for the hedge fund and Scout crossed the threshold requiring an SEC filing on May 15th. 

This month CST was spun-off from Valero (VLO).  Scout did not report ownership of VLO at the end of Q1, so it's hard to say if they bought VLO shares more recently and received shares via the spin, or if they simply built a position once CST started trading.

Shareholders of Valero on the books as of mid-April received 1 CST share for every 9 VLO shares owned.

Per Google Finance, CST Brands is "a retailer of transportation fuels and convenience goods in North America. As of April 30, 2013, the Company operated 1,032 Corner Stores throughout the United States, including Texas, Louisiana, Arkansas, Oklahoma, New Mexico, Colorado, Wyoming, Arizona and California. Its stores also provide prepared foods. The Company offers a range of products, such as snack foods, tobacco products, beverages and fresh foods, including its own brands: Fresh Choices sandwiches, salads and packaged goods; U Force energy drinks; Cibolo Mountain coffees (the United States); Transit Cafe coffee and bakery (Canada); FC bottled sodas, and Flavors 2 Go fountain sodas."

For more portfolio activity from this hedge fund, we recently posted about another stock Scout has been buying.

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