Valinor Boosts dELiA's Stake, Nominates Board Member: 13D Filing ~ market folly

Thursday, February 27, 2014

Valinor Boosts dELiA's Stake, Nominates Board Member: 13D Filing

David Gallo's hedge fund firm Valinor Management has just revealed an increased stake in dELiA's (DLIA).  Per a Form 3 and a 13D filed with the SEC, Valinor has revealed they own 18.7% of the company with aggregate exposure to over 14.3 million shares.

The Form 3 outlines that they own over 10.7 million shares of common stock.  They also own over 13.1 million shares worth of Series B convertible preferred stock as well.  The filings were made due to activity on February 18th and we flagged Valinor's original purchase of DLIA late last year

Valinor has also nominated Seth Cohen to the company's board of directors.  Prior to founding Valinor, Gallo worked at Roberto Mignone's Bridger Capital.

Numerous other hedge fund managers have been involved in this name as Lee Cooperman also reported a DLIA stake in November.  Whitney Tilson's Kase Capital had also previously been a big proponent of shares, but per his recent 13F filing, it looks like he exited the position in the fourth quarter of 2013.

Per Google Finance, dELiAs is "a retail company comprised of two lifestyle brands primarily targeting teenage girls and young women. The Company generates revenue by selling predominantly to teenage consumers through direct mail catalogs, Websites and retail stores. It operates in dELiA*s brand. Through its e-commerce Webpages, catalogs and retail stores, dELiA*s (the brand) offers a variety of product categories to teenage girls to cater to an entire lifestyle. Through its catalogs and the e-commerce Webpages, it sells many name brand products along with its own brand products in key teenage spending categories. These products include apparel and accessories. Its mall-based dELiA*s specialty retail stores derive revenue primarily from the sale of apparel and accessories and, to a lesser extent, branded apparel to teenage girls. It operates in two segments: direct marketing and retail stores." 

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