Valinor Management & Lee Cooperman Update dELiA's Stakes

David Gallo's hedge fund firm Valinor Management has filed an amended 13D and form 4 with the SEC regarding their stake in dELiA's (DLIA).  Per the filing, Valinor now owns 27.9% of the company with aggregate exposure to 24.8 million shares.

This marks an increase of over 18.2 million shares of common stock since the end of the first quarter.  Valinor automatically converted their Secured Convertible Notes into shares of Series B Convertible Preferred Stock.  The filing was made due to activity on June 17th.

The 13D notes that Valinor has nominated Seth Cohen to dELiA's board and he is now a director.  The hedge fund also has the right to nominate another individual to the board, but that person cannot be an employee of the fund.

Valinor originally started its dELiAs stake in October of 2013. 


Lee Cooperman Updates Stake Too

Omega Advisors' Lee Cooperman has also filed an amended 13G with the SEC regarding dELiA's too.  Lee has revealed he owns 11.42% of the company with over 8.5 million shares.

His stake is comprised of 3.75 million shares of common stock (issuable upon conversion of 30,000 shares of Series B Convertible Preferred Stock).

A few months ago, we also highlighted that Tiger Global raised its dELiA's stake.

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."

Tiger Global Raises dELiA*s Stake

Chase Coleman and Feroz Dewan's hedge fund Tiger Global has updated its position in dELiA*s (DLIA).  Per a 13G filed with the SEC, they now own 6.3% of the company with over 4.4 million shares.

This marks an increase of over 1 million shares since the end of 2013.  The filing was made due to activity on February 18th.

They aren't the only hedge fund that's been active in this stock lately, either.  David Gallo's Valinor Management started a DLIA stake recently and Lee Cooperman has owned DLIA as well.

Per Google Finance, dELiA*s 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."

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." 

Lee Cooperman Discloses dELiA's Stake

Lee Cooperman has filed a 13G with the SEC disclosing a brand new equity position in dELiA's (DLIA).  Per the filing, he owns 6.93% of the company with 4,761,905 shares.

The filing was made due to portfolio activity on October 24th.  On that day, the company also issued over 20.7 million shares upon automatic conversion of over $21.7 million in principal of the company's secured 7.25% convertible promissory notes.

Just last week, we highlighted how David Gallo's Valinor Management started a DLIA stake as well.

*Update: II Alpha talked to Cooperman about the stake and he said it was for his personal account and he bought it "because a guy I respect recommended it to me.  I have done no original work other than taking my granddaughter shopping in one of their stores as she likes the merchandise."

Lee Cooperman files with the SEC under his own name, but his hedge fund Omega Advisors files its SEC documents under that name as well, so it's interesting to hear this is a personal position.  It's also interesting to hear that he simply bought this stock on a tip with hardly any research.

Per Google Finance, dELiA's 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."

For more on Omega Advisors, head to Cooperman's 4 long ideas at the Invest For Kids Chicago conference.

Valinor Management Starts dELiAs (DLIA) Stake

David Gallo's hedge fund firm Valinor Management just filed a 13G with the SEC regarding shares of dELiAs (DLIA).  Per the filing, the hedge fund has disclosed a 9.56% ownership stake in dELiAs (DLIA) with 6,571,429 shares.

This is a brand new position for Valinor and the filing was due to portfolio activity on October 24th.  Whitney Tilson's Kase Capital has also been involved with DLIA shares.

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."

Whitney Tilson's Kase Capital Q1 Letter: Pitch on Deckers, Sears Hometown & Outlet Stores

The hedge fund duo of Whitney Tilson and Glenn Tongue split up last year and now Tilson is managing his Kase Capital solo.  He just sent out his first quarter letter to investors where he outlines two of his new investments: Deckers (DECK) and Sears Hometown & Outlet Stores (SHOS), which you can read in the letter below.

Kase Capital's Top Holdings

In Kase Capital's letter, Tilson also lists his largest positions:

1. AIG (AIG)
2. Berkshire Hathaway (BRK.A)
3. Howard Hughes (HHC)
4. Deckers (DECK)
5. Citigroup (C)
6. Goldman Sachs (GS)
7. Netflix (NFLX)
8. Canadian Pacific (CP)
9. dELiA*s (DLIA)
10. Iridium (IRDM)
11. Grupo Prisa (B Shares)
12. Sears Hometown & Outlet (SHOS)
13. Spark Networks (LOV)


Tilson's Shorts & Exposure Levels

Tilson also reiterated a few stocks that he's short: InterOil (IOC), K-12 (LRN), and Nokia (NOK).  He's also holding a large cash balance, waiting for better opportunities to deploy capital.  His equity exposure comes in at 66% long and 22% short currently.


Embedded below is Whitney Tilson's Kase Capital first quarter letter to investors for 2013: