Quincy Lee's Teton Capital Trims Xoom Position ~ market folly

Friday, June 12, 2015

Quincy Lee's Teton Capital Trims Xoom Position

Quincy Lee's hedge fund Teton Capital Partners (Ancient Art LP) has filed an amended 13D with the SEC on its position in Xoom (XOOM).  Per the filing, Teton now owns 4.9% of XOOM with 1,897,323 shares.

Teton recently sold shares in late May and early June between $18.8514 and $21.0973.  Since the end of the first quarter, they've reduced their position size by 336,514 shares.  Year-to-date, XOOM shares have traded from around $18 in January up to recent levels of around $21.64.

Loosely speaking, the thesis on this name is that Xoom can take market share in the money transfer business with their digital offering from traditional players such as Western Union and Moneygram.

About Teton Capital / Ancient Art LP

Quincy Lee founded Teton Capital after working at publicly traded Rackspace.  According to The Economist, Teton returned 21% a year between 2001 and 2011.  Teton/Ancient Art is based in Austin, Texas.

About Xoom

Per Google Finance, Xoom is "engaged in the digital consumer-to-consumer international money transfer business. The Company offers money transfer services from the United States to around 32 countries and its cross-border bill payment services from the United States to approximately five countries. Xoom's solutions offer its customers a way to send money to, and pay bills for family and friends from any Internet-enabled location. The Company's operating platform provides various solutions for transferring funds internationally, such as origination, funding, disbursement and transaction processing. The Company's technology platform includes a customer interface which enables customers to send transactions from its Website, mobile Website or mobile application, using a computer, a tablet or a mobile phone; a risk management system; a transaction processing platform, and a disbursement integration platform."

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