JANA Partners Blows Out Of Civeo Position

Barry Rosenstein's activist hedge fund firm JANA Partners has filed a Form 4 and 13D with the SEC regarding shares of Civeo (CVEO).  Per the filing, JANA Partners no longer owns any CVEO shares.

The Form 4 notes that JANA sold the bulk of its position on December 30th at prices of $4.13 and $4.29.  Shares fell over 50% during the month of December.

Per Google Finance, Civeo "operates in active oil, coal, natural gas and iron ore producing regions, including Canada, Australia and the United States. The Company is engaged in providing an integrated service offering to its customers, which include independent oil and natural gas companies, mining companies and oilfield and mining service companies. The Company’s premium accommodations services allow its customers to outsource their accommodations needs to a single supplier, maintaining employee welfare and satisfaction while focusing their investment on their core resource development efforts. In June 2014, Oil States International Inc completed spin-off of the Company."

You can view additional past portfolio activity from JANA Partners here.

Einhorn's Greenlight Capital Files 13D on Civeo

David Einhorn's hedge fund firm Greenlight Capital has filed a 13D on shares of Civeo (CVEO).  Per the filing, they now own 9.99% of the company with over 10.65 million shares.

This means they've boosted their holdings by over 4.5 million shares since the end of the second quarter.  The filing was made due to activity on September 30th but they've continued to buy into October.  They've purchased shares in the $12.37 range recently.

Greenlight originally received shares of CVEO in the spin-off from Oil States International (OIS), which they also own.

Einhorn's 13D indicates that they've had conversations with the board and made the following suggestions: the company should take on leverage to make its capital structure more appropriate for a real estate company, the company should aggressively return capital to shareholders via dividends, and the company should replace its CEO.

For more from this hedge fund, check out Einhorn's recent comments at the Great Investors' Best Ideas conference this week.

JANA Partners Exercises Calls on Oil States International

Barry Rosenstein's hedge fund JANA Partners has filed a Form 4 with the SEC regarding shares of Oil States International (OIS).  Per the filing, JANA has exercised 10,000 call options and converted those into 1 million shares of OIS. 

After the transaction, JANA now owns over 6.4 million shares of OIS.  The options had a exercise price of $80 with an expiration date of October 11th.

David Einhorn's Greenlight Capital is also involved in this company as it's one of his largest positions.  Earlier this year, our Hedge Fund Wisdom newsletter analyzed OIS and outlined the investment thesis.  You can subscribe here to read it.

Per Google Finance, Oil States International "is a provider of specialty products and services to natural resources companies worldwide. The Company operates in oil and natural gas and coal producing regions, including Canada, onshore and offshore the United States, Australia, West Africa, the North Sea, South America and Southeast and Central Asia. Its customers include national oil companies, oil and natural gas companies, onshore and offshore drilling companies, other oilfield service companies and mining companies. It operates in four segments: accommodations, offshore products, well site services and tubular services. In September 2013, Oil States International Inc sold Sooner, Inc. and its subsidiaries (Sooner) to Marubeni-Itochu Tubulars America, Inc."

For more on this hedge fund, we posted Barry Rosenstein's recent interview.

Notes From Ira Sohn Conference 2013: Einhorn, Druckenmiller, Eisman & More

Today we present notes from the 2013 Ira Sohn Conference in New York.  The 18th annual event featured top hedge fund managers presenting investment ideas and the proceeds from the event benefit pediatric cancer research and treatment via the Sohn Conference Foundation.  Summaries of each speaker's talk are linked below.


Notes From Ira Sohn Conference 2013

Stanley Druckenmiller (Druckenmiller Family Office) on commodities, short Australian Dollar

David Einhorn (Greenlight Capital) on Oil States International (OIS)

Steve Eisman (Emrys Partners) on housing plays: OCN, LEN, PHM, FBHS, FOR, CLNY, AMWD

Paul Singer (Elliott Management): a financial overview & history of markets

Jim Chanos (Kynikos Associates): short disk drive makers Seagate & Western Digital

Kyle Bass (Hayman Capital) on Dex Media (DXM) and Japan

Bill Ackman (Pershing Square): long Procter & Gamble (PG)

Jeffrey Gundlach (DoubleLine) on quantitative easing, short French bonds, short Chipotle

Jonathon Jacobson (Highfields Capital): Short Digital Realty Trust (DLR)

Mitchell Julis (Canyon Partners) on Clear Channel Outdoor (CCO) & Apple (AAPL)

Keith Meister (Corvex Management): long Time Warner Telecom (TWTC) & Level 3 (LVLT)

David Stemerman (Conatus Capital): short African Bank (ABL:SJ)

Li Lu (Himalaya Capital) on Korean preferreds (Samsung, Hyundai)

Clifton Robbins (Blue Harbour Group) on CACI & Akamai

Tor Olav Troim (Seadrill) on opportunities in cyclical industries

Simeon McMillan (Columbia MBA, investment contest winner) on Tribune Company

David Einhorn's Sohn Conference Presentation: Oil States International (OIS)

We're posting up notes from the Ira Sohn Conference 2013 in New York.  Next up is a summary of the presentation from David Einhorn of Greenlight Capital.  He presented a long of Oil States International (OIS).


Long: Oil States International (OIS)

It's a low cost provider.  Trades at 4x, a discount.  Just under 7x EBITDA, should be over 8x  Almost half their fleet is proprietary/patent protected and has higher margins than competitors.  The offshore segment is undervalued as well.  It's an interesting business with high margins that isn't reflected in the valuation.

Sum of the parts (SOTP) = $118 (stock closed $95 that day, he presented after market close).  If you start to look at a REIT valuation, it could be worth $155.

Einhorn's not the only prominent hedgie in this trade, either.  We flagged how Barry Rosenstein's hedge fund JANA Partners filed a 13D on OIS recently as well.

The Greenlight manager also made some intriguing comments about his presentations at big events and noted he usually doesn't trade out of a position within 3 months of an event.  Reiterated to do your own work.

Einhorn also said he agreed with Druckenmiller's talk and said Greenlight is short steel and iron ore.

In addition to managing Greenlight Capital, Einhorn is also the author of Fooling Some of the People All of the Time.  For more on this manager, you can check out one of Einhorn's letters to investors discussing some of his positions.


Check out the rest of the hedge fund presentations from the event: notes from Ira Sohn Conference 2013.

JANA Partners Reveals New Activist Position in Oil States International

Barry Rosenstein's hedge fund JANA Partners today filed a 13D with the SEC revealing a brand new position in Oil States International (OIS).  Per the filing, JANA now owns 9.1% of the company with 5,000,002 shares.

The 13D was required due to portfolio activity on April 19th.  They've been out buying OIS shares as recently as April 29th at a price of $76.66.  JANA's reported 5 million share position is inclusive of options to purchase 824,600 shares. 

Drilling down this position, we see that JANA owns 3,640 call options with a strike price of $65 and 4,606 call options with a strike of $60, both with expiration on June 3rd, 2013.

Additionally, they've sold 3,640 put options with a strike price of $65 that expire on June 3rd, 2013.  JANA's been busy of late as they also recently revealed a position in Ashland (ASH) as well.


JANA's New Activist Position

In the 13D filing, we see that JANA has pursued shareholder activism as the purpose of transaction section notes that JANA:

"acquired the Shares because it believes the Shares are undervalued and represent an attractive investment opportunity. The Reporting Person has had discussions with the Issuer’s management relating to the Issuer’s corporate structure including a discussion on April 26, 2013 regarding separating its Well Site Services, Offshore Products, and Tubular Services segments (referred to collectively as "Oilfield Services") from its Accommodations segment and the formation of a REIT for Accommodations. The Reporting Person also may seek to discuss the Issuer’s capitalization, operations, strategy and future plans."

Per Google Finance, Oil States International is "a provider of specialty products and services to natural resources companies worldwide. The Company operates in oil and natural gas and coal producing regions, including Canada, onshore and offshore the United States, Australia, West Africa, the North Sea, South America and Southeast and Central Asia. Its customers include national oil companies, oil and natural gas companies, onshore and offshore drilling companies, other oilfield service companies and mining companies. It operates in four segments: accommodations, offshore products, well site services and tubular services."


For more on this activist investor, be sure to check out a very interesting interview with Barry Rosenstein.