ValueAct Capital Boosts Dresser-Rand Stake, Files 13D ~ market folly

Monday, March 3, 2014

ValueAct Capital Boosts Dresser-Rand Stake, Files 13D

Jeff Ubben's hedge fund firm ValueAct Capital filed a 13D with the SEC regarding its stake in Dresser-Rand Group (DRC).  Per the filing, ValueAct now owns 6.6% of DRC with over 5 million shares.

This is a sizable increase as they only owned around 650,000 shares at the end of 2013.  The filing was required due to activity on February 18th, but they've been buying throughout January and February, at prices ranging from $53.xx to $57.05.  DRC currently trades around $57.xx.

Though this is an activist 13D filing, they didn't outline any specific plans and the filing contains the standard boilerplate.

Per Google Finance, Dresser-Rand Group is " a global supplier of of custom-engineered rotating equipment solutions for long-life, critical applications in the oil, gas, chemical, petrochemical, process, power generation, military and other industries worldwide. It has two segments: new units and aftermarket parts. New units are predominately engineered solutions to new requests from clients. Aftermarket parts and services consist of support solutions for the existing population of installed equipment and the operation and maintenance of several types of energy plants. Its rotating equipment is also supplied to the environmental solutions market space within energy infrastructure. It designs, manufactures and markets engineered rotating equipment and provide services to the worldwide oil, gas, petrochemical, power generation, environmental solutions and industrial process industries."

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