Tuesday, May 10, 2011

Third Point Adds To Xerium Technologies (XRM) Position

Dan Loeb's Third Point LLC just filed an amended 13G with the SEC regarding shares of Xerium Technologies (XRM). Due to portfolio activity on May 5th, Third Point has revealed a 11.3% ownership stake in XRM with 1,700,000 shares.

This marks an increase in their position size of 18%. Loeb's fund held 1,436,405 shares at the end of 2010. The company recently announced a plan to refinance its credit facilities. For more on Third Point, check out our post on their latest exposure levels as well as their focus on spin-outs.

Per Google Finance, Xerium Technologies is "a global manufacturer and supplier of two types of consumable products used primarily in the production of paper: clothing and roll covers."

To learn to invest like this manager, head to Dan Loeb's recommended reading list.

Baupost Group Doubles Aveo Pharmaceuticals Stake, Trims BreitBurn Energy Partners

Seth Klarman's Baupost Group recently filed two 13G's with the SEC. Baupost's equity activity is pretty minimal so it's always an interesting treat when they have some activity. We also covered some of Klarman's thoughts in Baupost's year-end letter.

Aveo Pharmaceuticals (AVEO)

First, due to trading on April 30th, Baupost has disclosed a 11.77% stake in Aveo Pharmaceuticals (AVEO) with 4,221,010 shares. Baupost has doubled its stake in the company. They originally started a brand new position in the name back in the fourth quarter with 2,000,000 shares.

BreitBurn Energy Partners (BBEP)

Second, due to trading on the same day, Klarman's firm has also revealed a 4.23% stake in BreitBurn Energy Partners (BBEP) with 2,500,000 shares. This marks a decrease in their position size of 42.5% as they owned 4,350,000 shares at the end of 2010.

To see the rest of Klarman's recent equity activity, be sure to subscribe to our Hedge Fund Wisdom newsletter as a new issue is just around the corner.

Per Google Finance, Aveo Biopharmaceuticals is "a biopharmaceutical company focused on discovering, developing and commercializing cancer therapeutics. Its product candidates are directed against mechanisms known to be involved in cancer."

BreitBurn Energy Partners is "an independent oil and gas partnership focused on the acquisition, exploitation and development of oil and gas properties in the United States."

For from this manager, be sure to read through a collection of Seth Klarman's Baupost Group letters.

Eminence Capital Adds to Novellus Systems (NVLS)

Ricky Sandler's hedge fund Eminence Capital just filed a 13G with the SEC regarding shares of Novellus Systems (NVLS). Per trading activity on April 29th, the hedge fund has disclosed a 6.3% ownership stake in NVLS with 5,623,442 shares.

This marks almost a 66% increase in their position size. At the end of 2010, they owned 3,390,000 shares of NVLS. It looks as though Eminence added to their stake on the recent sell-off after the company's guidance missed analyst estimates. Novellus recently announced the pricing of $600 million senor convertible notes due 2041.

Sandler started Eminence after previously being an analyst at Mark Asset Management. In the past, he also started Fusion Partners at 25 with Wayne Cooperman. As their investment styles differed, Sandler started Eminence.

He employs a 'quality value' approach by spending equal amounts of time on the long and short side of the portfolio. Eminence employs gross leverage and typically runs 120% long and 70% short. Last year we saw that Eminence favored high quality large caps.

Per Google Finance, Novellus Systems "together with its subsidiaries, develops, manufactures, sells and supports equipment used in the fabrication of integrated circuits, commonly called chips or semiconductors."