Jeffrey Gendell's Tontine Associates Sells Broadwind Energy Shares (BWEN)

Jeffrey Gendell's hedge fund firm Tontine Associates has just filed a Form 144 with the SEC disclosing that they will be selling 378,256 shares of Broadwind Energy (BWEN) with an aggregate market value of just over $4 million with 96,546,782 shares outstanding. Additionally, the filing shows us that on 6/28/09, Tontine sold 915,000 shares for over $9.7 milion. For those of you unfamiliar with a Form 144, it is basically a notice of proposed sale of securities. In this case, Tontine is trying to wind down some of their illiquid and hard to sell positions where they are the majority owners. This is not a new development, as Tontine has been trying to wind down these positions for some time now. Goldman Sachs is the broker who will offer/acquire the securities in this transaction. Tontine had originally acquired shares back on March 1st, 2007. This all comes interestingly enough after shares of BWEN have jumped over 51% over the past week on news of the realignment of its management team and technology efforts.

This is yet another development in the wake of Tontine's blowup. They closed down 2 of their funds after horrid performance in 2008 and have been recuperating ever since. One would think that such a recovery would be a long, hard road. Tontine would argue the contrary. Their performance numbers this year have been ridiculously good. But, keep in mind that they are still within the context of a horrid prior year. As we noted in our May 2009 hedge fund performance numbers post, Tontine's 25 fund was up 17.5% for May and was up 72.3% for the year at that time. Their Partners fund was up 15.2% for May and was up 49.8% for the year at that time. So, outstanding performance and quite the rebound. And, while 2 of their funds may have closed down, Tontine has a new Total Return fund that launched back in February.

Founded 11 years ago, Tontine is a $6 billion firm ran by Jeffrey Gendell. Gendell graduated from Duke and worked in Corporate Finance for Smith Barney. He specializes in macro investing and takes very large, concentrated positions in companies he feels will benefit from those macro themes. Additionally, he will take on an activist role when necessary, to ensure shareholder returns. The fund has posted returns in excess of 100% in both 2003 and 2005, but posted massive losses in 2008. Gendell's Tontine firm is named after an annuity invented by Lorenzo de Tonti. In such an annuity, investors contribute and collect dividends. As investors each die off, their share is left to the remaining partners. Therefore, the last man alive receives all the money. Gendell's desire is clearly to be that 'last investor' remaining. Such a goal becomes slightly ironic when you consider his firm suffered monumental losses and almost 'died' last year. Gendell explains the turmoil they faced in his October letter to investors (.pdf format).

Taken from Google Finance, Broadwind Energy is "a supplier of value-added products and services to the North American wind energy sector, as well as other energy-related industries. The Company provides range of component and service offerings to wind turbine manufacturers and developers, wind farm operators and service companies. It has developed a range of United States-based supply chain for wind development in North America."

Jeffrey Gendell's Tontine Associates 13F Filing Q4 2008

This is the 4th Quarter 2008 edition of our ongoing hedge fund portfolio tracking series. Before reading this update, make sure you check out the Hedge Fund 13F filings preface.

Next up is Jeffrey Gendell's Tontine Associates. If you're unfamiliar with Tontine, they specialize in macro investing and take very large, concentrated positions in companies Gendell feels will benefit from those macro themes. Additionally, he will take on an activist role when necessary, to ensure shareholder returns. The fund has posted returns in excess of 100% in both 2003 and 2005. Conversely, 2008 was the year from hell for Tontine.

Jeffrey Gendell's hedge fund firm has been quite busy over the past year, and in particular over the past few months. As two of his hedge funds have closed down, his portfolio has been shuffled around all over the place. (Some of their recent changes can be seen here). As we've detailed before, Tontine has recently sold out of 15 positions, as well as filed amended 13D's to many of their holdings, and then they most recently sold out of 9 more positions. They closed two of their hedge funds: Tontine Capital LP and Tontine Capital Partners LP. Two of Tontine's funds will remain open: Tontine-25 and Tontine Financial. Then, most recently, they filed a 13D on Neenah Enterprises (NENA).

As listed in our hedge fund year-end performance numbers post, their Tontine Partners LP fund was -12.1% for December and finished the year -91.5%. Yes, you read that correctly. Their Tontine 25 LP fund was -2.2% for December and ended 2008 -63.6%. As such, Gendell made Alpha's list of 'Biggest hedge fund losers for 2008' (See also top 25 gainers). Gendell also opened the new Tontine Total Return Fund. This fund will not use leverage and will invest in assets deemed undervalued. The portfolio shuffling has been nonstop and we'll continue to monitor things going forward.

It has definitely been an astonishing year for Gendell, whose Tontine firm is named after an annuity invented by Lorenzo de Tonti. In such an annuity, investors contribute and collect dividends. As investors each die off, their share is left to the remaining partners. Therefore, the last man alive receives all the money. Gendell's desire is clearly to be that 'last investor' remaining. Such a goal becomes slightly ironic when you consider his firm suffered monumental losses and almost 'died' this past year. Gendell explains the turmoil they faced in his October letter to investors (.pdf format).

The following were their long equity, note, and options holdings as of December 31st, 2008 as filed with the SEC. We have not detailed the changes to every single position in this update, but we have covered all the major moves. All holdings are common stock unless otherwise denoted.


Some New Positions (Brand new positions that they initiated in the last quarter):
Chart Industries (GTLS)
Ultrashort Financials (SKF)
Englobal Corp (ENG)
Regional Bank HOLDRS (RKH)
Halliburton (HAL)
Oil Service HOLDRS (OIH)


Some Increased Positions (A few positions they already owned but added shares to)
n/a


Some Reduced Positions (Some positions they sold some shares of - note not all sales listed)
KBR (KBR): Reduced by 96.5%
Quanta Services (PWR): Reduced by 96%
Trinity Industries (TRN): Reduced by 95.8%
Thomas & Betts (TNB): Reduced by 94%
Shaw Group (SGR): Reduced by 94%
Enersys (ENS): Reduced by 91%
Smith (AOS): Reduced by 88%
Navistar (NAV): Reduced by 85%
Brush Engineered Materials (BW): Reduced by 84.6%
Mastec (MTZ): Reduced by 83%
Nacco (NC): Reduced by 77.7%
Sterling Financial (STSA): Reduced by 76%
MYR Group (MYRG): Reduced by 50%
Sun Bancorp (SNBC): Reduced by 48.7%
Matrix (MTRX): Reduced by 44%
Citigroup (C) Calls: Reduced by 42%
Bank of America (BAC) Calls: Reduced by 36%


Removed Positions (Positions they sold out of completely)
Hovnanian (HOV)
Susquehanna (SUSQ)
MI Homes (MHQ)
Baker (BKR)
Comfort Systems (FIX)
Continental Airlines (CAL)
Internet Capital Group (ICGE)
Furmanite (FRM)
LB Foster (FSTR)
Webster (WBS)
Champion (CHB)
US Airways (LCC)
Whitney (WTNY)
Greenbrier (GBX)
Bank of America (BAC)
Citigroup (C)
YRC Worldwide (YRCW)
Associated Bancorp (ASBC)
Pike Electric (PEC)
Chemtura (CEM)
General Cable (BGC)
Itron (ITRI)
US Steel (X)
Astec (ASTE)
Perini (PCR)
Ultra Financials (UYG)
DST Systems (DST)
Graftech (GTI)
Emcor (EME)


Top 20 Holdings (by % of portfolio)

1. Exide Technologies (XIDE): 17.75% of portfolio
2. Integrated Electrical (IESC): 10.6% of portfolio
3. Bank of America (BAC) Calls: 8.77% of portfolio
4. Innospec (IOSP): 4% of portfolio
5. Performed Line Products (PLPC): 3% of portfolio
6. Citigroup (C) Calls: 2.6% of portfolio
7. Matrix Service (MTRX): 2% of portfolio
8. Mastec (MTZ): 1.89% of portfolio
9. Wabash (WNC): 1.8% of portfolio
10. Westmoreland Coal (WLB): 1.5% of portfolio
11. Navistar (NAV): 1.47% of portfolio
12. Quanta Services (PWR): 1.2% of portfolio
13. Thomas & Betts (TNB): 1.17% of portfolio
14. Ferro (FOE): 1.15% of portfolio
15. Sun Bancorp (SNBC): 1.14% of portfolio
16. Brush Engineered Materials (BW): 1% of portfolio
17. Sterling Financial (STSA): 1% of portfolio
18. Oil Service HOLDRS (OIH): 0.99% of portfolio
19. Halliburton (HAL): 0.98% of portfolio
20. North American Energy (NOA): 0.97% of portfolio

Please keep in mind that this portfolio is undergoing a ton of changes and is even more-so 'out of date' than other funds that we cover given their unique circumstances. This is what they reported as of December 31st, 2008 and as we referenced up above, you've got to monitor the 13Ds and 13Gs, as they've been very active filing them January through March. That is the only way to get a truly 'up to date' look at their portfolio, since they've got so much going on at once. So, we highly recommend you check out the links we've posted up above for the most recent activity. This 13F filing is the definition of portfolio unwinding. Since they had to close down two funds, you saw an enormous amount of selling. Assets dropped from $6.5 billion in reported long US equity, options, and note holdings last quarter all the way down to $706 million this quarter. That is some serious unwind and is the direct result of 2 funds closing down. This is just one of many funds in our hedge fund portfolio tracking series in which we're tracking 35+ prominent funds.

We've already covered:

• Well known gurus such as: Carl Icahn, Warren Buffett, & George Soros
• 'Tiger Cub' portfolios: Stephen Mandel's Lone Pine Capital, Andreas Halvorsen's Viking Global, Lee Ainslie's Maverick Capital, and John Griffin's Blue Ridge Capital
• Global macro giants: Bruce Kovner's Caxton Associates, Louis Bacon's Moore Capital Management, Peter Thiel's Clarium Capital, & Paul Tudor Jones' Tudor Investment Corp
  
• Value & Activist players like: Bill Ackman's Pershing Square, Seth Klarman's Baupost Group, Art Samberg's Pequot Capital, & David Einhorn's Greenlight Capital
• Concentrated portfolios like: Bret Barakett's Tremblant Capital, & Timothy Barakett's Atticus Capital
• Some solid names: Paulson & Co (John Paulson) and Eric Mindich's Eton Park Capital
• Newer funds on the scene: James Pallotta's Raptor Capital Management, Anand Parekh's Alyeska Investment Group, & David Stemerman's Conatus Capital
  

Check back daily as we'll cover a new fund each day.

Jeffrey Gendell's Tontine Associates Files Amended 13D on Neenah Enterprises (NENA)

Hedge fund Tontine Associates has filed an amended 13D with the SEC and has disclosed a 65.3% ownership stake on Neenah Enterprises (NENA). Tontine shows an aggregate amount of shares beneficially owned of 9,550,697 due to activity on March 18th, 2009.

Jeffrey Gendell's hedge fund firm has been quite busy over the past year, and in particular over the past few months. As two of his hedge funds have closed down, his portfolio has been shuffled around all over the place. (Some of their recent changes can be seen here). As we've detailed before, Tontine has recently sold out of 15 positions, as well as filed amended 13D's to many of their holdings, and then they most recently sold out of 9 more positions.

If you're unfamiliar with Tontine, they specialize in macro investing and take very large, concentrated positions in companies he feels will benefit from those macro themes. Additionally, he will take on an activist role when necessary, to ensure shareholder returns. The fund has posted returns in excess of 100% in both 2003 and 2005. Conversely, this year has been the year from hell for Tontine. Recently, they announced they would be closing two of their hedge funds: Tontine Capital LP and Tontine Capital Partners LP. Two of Tontine's funds will remain open: Tontine-25 and Tontine Financial.

It has definitely been an astonishing year for Gendell, whose Tontine firm is named after an annuity invented by Lorenzo de Tonti. In such an annuity, investors contribute and collect dividends. As investors each die off, their share is left to the remaining partners. Therefore, the last man alive receives all the money. Gendell's desire is clearly to be that 'last investor' remaining. Such a goal becomes slightly ironic when you consider his firm suffered monumental losses and almost 'died' this past year.

For more on top hedge funds, check out our portfolio tracking series where we're in the middle of tracking a different fund's Q4 holdings each day.

Taken from Google Finance,

Neenah Enterprises, Inc. is "a foundry company in the United States and is a supplier of casting to the heavy municipal market. The Company sells these municipal castings throughout the United States to state and local government entities, utility companies, precast concrete manhole structure producers, and contractors for both new construction and infrastructure replacement."

Hedge Fund Tontine Associates Updates Stakes Via 13G Filings

Well, you might want to get used to all the Tontine Associates updates. After all, they are closing two of their hedge funds after having a very rough year where one of their funds ended up -91.5%, as noted in our year end 2008 hedge fund performance list. So, such liquidations are the reason behind the constant portfolio shuffling and SEC filings. As we've detailed before, Tontine has recently sold out of 15 positions, as well as filed amended 13D's to many of their holdings, and then they most recently sold out of 9 more positions.

This time around, they were amending various 13G filings to companies that they still hold a position in. For the most part though, those positions are now pretty small compared to what they used to be.

Firstly, in an amended 13G filing, Tontine is showing a 7.59% ownership stake in Patapsco Bancorp (PATD) with 141,385 shares.

Secondly, they also now show a 7.55% ownership stake in PVF Capital (PVFC) with 587,233 shares.

Thirdly, they have a 1.04% ownership stake in Beazer Homes (BZH) with 408,200 shares.

They also now show a 0.47% ownership stake in Trinity Industries (TRN) with 370,751 shares.

Next, Gendell and company also filed an amended 13G on AMR Corp (AMR) disclosing a 0.15% ownership stake with 430,072 shares.

Sixth, they show a 0.03% ownership stake in Goodyear Tire & Rubber (GT) with 61,200 shares.

Additionally, they disclosed an updated 0.44% ownership stake in Ameron (AMN) with 40,000 shares.

Lastly, Tontine now shows a 0.09% ownership stake in Hexcel (HXL) with 85,255 shares.

You can also view their entire portfolio here. Do note that the next update of portfolio holdings (13F filing) is due in a week or so, and their portfolio will undoubtedly change again as they continue to liquidate positions as they close down 2 of their funds.

If you're unfamiliar with Tontine, they specialize in macro investing and take very large, concentrated positions in companies he feels will benefit from those macro themes. Additionally, he will take on an activist role when necessary, to ensure shareholder returns. The fund has posted returns in excess of 100% in both 2003 and 2005. Conversely, this year has been the year from hell for Tontine. Recently, they announced they would be closing two of their hedge funds: Tontine Capital LP and Tontine Capital Partners LP. Two of Tontine's funds will remain open: Tontine-25 and Tontine Financial.

It has definitely been an astonishing year for Gendell, whose Tontine firm is named after an annuity invented by Lorenzo de Tonti. In such an annuity, investors contribute and collect dividends. As investors each die off, their share is left to the remaining partners. Therefore, the last man alive receives all the money. Gendell's desire is clearly to be that 'last investor' remaining. Such a goal becomes slightly ironic when you consider his firm suffered monumental losses and almost 'died' this past year. Gendell explains the turmoil they faced in his October letter to investors (.pdf format).

Taken from Google Finance,

Patapsco Bancorp, Inc. "is the holding company of The Patapsco Bank (the Bank). The Bank is a commercial bank operating through five full-service offices located in Dundalk, Parkville, Carney, Glen Arm and Baltimore City, Maryland. The primary business of the Bank is to attract deposits from individual and corporate customers, and to originate residential and commercial mortgage loans, commercial loans and consumer loans, primarily in the Greater Baltimore Metropolitan area."

PVF Capital Corp. (PVF) "is the holding company that operates through its principal subsidiary, Park View Federal Savings Bank (Park View Federal or the Bank). Park View Federal is a federal stock savings bank operating through 17 offices located in Cleveland and surrounding communities."

Beazer Homes USA, Inc. (Beazer) is "a diversified homebuilder. It operates in 17 states. The Company’s homes are designed to appeal to homeowners at various price points across various demographic segments and are generally offered for sale in advance of their construction."

Trinity Industries, Inc. (Trinity) is a "multi-industry company that owns a range businesses, which provide products and services to the industrial, energy, transportation and construction sectors."

AMR Corporation (AMR) "operates primarily in the airline industry through its principal subsidiary, American Airlines, Inc. (American). American is a scheduled passenger airline."

The Goodyear Tire & Rubber Company (Goodyear) is "a manufacturer of tires and rubber products, engaging in operations in most regions of the world. The Company, together with its United States and international subsidiaries and joint ventures, develops, manufactures, markets and distributes tires for most applications."

Ameron International Corporation (Ameron) is "a multinational manufacturer of engineered products and materials for the chemical, industrial, energy, transportation and infrastructure markets."

Hexcel Corporation (Hexcel) is "an advanced composites company. Hexcel develops, manufactures and markets lightweight, high-performance composites, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, for use in the commercial aerospace, space and defense and industrial applications."

Hedge Fund Tontine Associates Sells Out Of 9 More Positions (Jeffrey Gendell)

Tontine Associates, the hedge fund firm ran by Jeffrey Gendell has yet again filed numerous amended 13G's with the SEC. Tontine has had a very rough year and will be closing two of its hedge funds, which is the reason behind much of the portfolio shuffling. As we've detailed before, Tontine has recently sold out of 15 positions, as well as filed amended 13D's to many of their holdings. They recently filed 9 more amended 13G's and have sold completely out of the following companies (in no particular order):

1. Ceco Environmental (CECE)
   
2. Champion Enterprises (CHB)
   
3. Downey Financial Corp (DWNFQ)
   
4. Insteel Industries (IIIN)
   
5. Ecology & Environment (EEI)
   
6. Graftech International (GTI)
   
7. Columbus McKinnon Corp (CMCO)
8. Emcor (EME)
9. Hovnanian (HOV)

They had previously held positions in these companies but no longer own shares. All of the filings were made due to activity on December 31st, 2008. You can view their entire portfolio here. Do note that the next update of portfolio holdings (13F filing) is due in a week or so, and their portfolio will undoubtedly change again as they continue to liquidate positions as they close down 2 of their funds.

If you're unfamiliar with Tontine, they specialize in macro investing and take very large, concentrated positions in companies he feels will benefit from those macro themes. Additionally, he will take on an activist role when necessary, to ensure shareholder returns. The fund has posted returns in excess of 100% in both 2003 and 2005. Conversely, this year has been the year from hell for Tontine. Recently, they announced they would be closing two of their hedge funds: Tontine Capital LP and Tontine Capital Partners LP. Two of Tontine's funds will remain open: Tontine-25 and Tontine Financial.

It has definitely been an astonishing year for Gendell, whose Tontine firm is named after an annuity invented by Lorenzo de Tonti. In such an annuity, investors contribute and collect dividends. As investors each die off, their share is left to the remaining partners. Therefore, the last man alive receives all the money. Gendell's desire is clearly to be that 'last investor' remaining. Such a goal becomes slightly ironic when you consider his firm suffered monumental losses and almost 'died' this past year. Gendell explains the turmoil they faced in his October letter to investors (.pdf format).

Jeffrey Gendell's Tontine Associates Files 13G's, Sells Out of 15 Positions

Tontine Associates, the hedge fund firm ran by Jeffrey Gendell has filed numerous amended 13G's with the SEC. As we've covered before on the blog, Tontine has had a very rough year and will be closing two of its hedge funds. The problem with their struggles is that they are the largest shareholder of some 8 companies and are trying to figure out what to do with those positions. Additionally, they've been shuffling their portfolio all around. We recently covered their most recent portfolio updates prior to these filings and we've covered their entire portfolio here.

Tontine filed amended 13G's on the following 15 companies and all the filings are essentially the same. We went through each individual filing and they were all similar in that Tontine sold completely out of their positions in the companies listed below. All of the filings were required due to activity on December 31st, 2008. So, as of these latest filings, Tontine has 0% stakes in the following companies and now holds 0 shares in each, having previously held a position in them:

1. PowerSecure International (POWR)
2. TRC Companies (TRR)
3. Pike Electric (PEC)
4. Tetra Tech (TTEK)
   
5. Ryland Group (RYL)
6. YRC Worldwide (YRCW)
7. Perini Corp (PCR)
8. Powell Industries (POWL)
9. U.S. Concrete (RMIX)
10. SIFCO Industries (SIF)
11. PFF Bancorp (PFFBQ)
12. M/I Homes (MHO)
13. Accuride (AURD)
14. Michael Baker Corp (BKR)
15. AZZ Incorporated (AZZ)

So, given that they are closing down 2 funds, we'll have to keep an eye out to see what other positions they may be liquidating and exiting. Gendell & Tontine specialize in macro investing and take very large, concentrated positions in companies he feels will benefit from those macro themes. Additionally, he will take on an activist role when necessary, to ensure shareholder returns. The fund has posted returns in excess of 100% in both 2003 and 2005. Conversely, this year has been the year from hell for Tontine. Recently, they announced they would be closing two of their hedge funds: Tontine Capital LP and Tontine Capital Partners LP. Two of Tontine's funds will remain open: Tontine-25 and Tontine Financial.

It has definitely been an astonishing year for Gendell, whose Tontine firm is named after an annuity invented by Lorenzo de Tonti. In such an annuity, investors contribute and collect dividends. As investors each die off, their share is left to the remaining partners. Therefore, the last man alive receives all the money. Gendell's desire is clearly to be that 'last investor' remaining. Such a goal becomes slightly ironic when you consider his firm suffered monumental losses and almost 'died' this past year. Gendell explains the turmoil they faced in his October letter to investors (.pdf format).


Information on the companies they sold out of, taken from Google Finance:

"PowerSecure International, Inc. (PowerSecure), formerly from Metretek Technologies, Inc., is a provider of energy management and conservation solutions to utilities and their commercial, institutional and industrial customers. The Company operates through its wholly owned subsidiaries, PowerSecure, Inc. (PowerSecure subsidiary), Southern Flow Companies, Inc. (Southern Flow), Metretek, Incorporated (Metretek Florida) and WaterSecure Holdings, Inc. (WaterSecure)."

TRC Companies, Inc. "is a national consulting, engineering and construction management firm that provides integrated services to the environmental, energy, infrastructure and real estate markets."

Pike Electric Corporation "is a provider of outsourced electric distribution and transmission services in the United States. It performs engineering, design, maintenance, upgrade and construction of electric distribution powerlines, sub-500 kilovolt (kV) transmission powerlines and substations for electric utilities, cooperatives and municipalities."

Tetra Tech, Inc. "is a provider of consulting, engineering, program management, construction and technical services focusing on resource management and infrastructure. The Company serves its clients by providing solutions to fundamental needs for water, environmental and alternative energy services."

The Ryland Group, Inc. "operates as a home builder and a mortgage finance company. The Company consists of six operating business segments: four geographically determined homebuilding regions; financial services, and corporate."

YRC Worldwide Inc. "is a holding company that through wholly owned operating subsidiaries offers its customers a range of transportation services. These services include global, national and regional transportation as well as logistics."

Perini Corporation (Perini) "is a construction services company, offering diversified general contracting, construction management and design-build services to private clients and public agencies throughout the world."

Powell Industries, Inc. (Powell) "develops, designs, manufactures and services engineered-to-order equipment and systems for the management and control of electrical energy and other critical processes."

U.S. Concrete, Inc. (U.S. Concrete) "is a producer of ready-mixed concrete, precast concrete and concrete-related products in select markets in the United States."

SIFCO Industries, Inc. (SIFCO) "is engaged in the production and sale of a range of metalworking processes, services and products produced primarily to the specific design requirements of its customers."

PFF Bancorp, Inc. "is a diversified financial services company. It conducts its business principally through its wholly owned subsidiary, PFF Bank & Trust (the Bank)."

M/I Homes, Inc. "is a builder of single-family homes. The Company sells and constructs single-family homes, attached townhomes and condominiums to first-time, move-up, empty-nester and luxury buyers under the M/I Homes and Showcase Homes trade names."

Accuride Corporation (Accuride) "is a manufacturer and supplier of commercial vehicle components in North America."

Michael Baker Corporation "provides engineering and energy services to public and private sector clients worldwide through its operating subsidiaries."

AZZ incorporated (AZZ) is "an electrical equipment and components manufacturer, serving the global markets of power generation, transmission and distribution, and the general industrial markets."

Portfolio Update: Jeffrey Gendell's Tontine Associates Files 13D's

Tontine Associates, the hedge fund ran by Jeffrey Gendell, has filed an amended 13D with the SEC and has disclosed a 57.3% ownership stake in Patrick Industries (PATK). The 13D was filed due to their activity on December 11th, 2008 and they now own 5,174,963 shares. You can view the rest of Tontine's portfolio holdings here.

Additionally, they recently filed an amended 13D and have disclosed a 48.7% ownership stake in Broadwind Energy (BWEN). Also worth noting from the filing is the fact that they have

"extended the date by which the Company is required to file the shelf registration statement to March 31, 2009... and the Reporting Persons have begun to explore alternatives for the disposition of their equity interests in the Company, which alternatives may include, without limitation: (a) dispositions of Common Stock through open market sales, underwritten offerings and/or privately negotiated sales by the Reporting Persons, (b) a sale of the Company, or (c) distributions by the Reporting Persons of their equity interests in the Company to their respective investors. The Reporting Persons expect to engage in discussions with the Company’s management and Board of Directors in the evaluation of such alternatives."

As we've covered before on the blog, Tontine has had a very rough year and will be closing two of its hedge funds. The problem with their struggles is that they are the largest shareholder of some 8 companies (including BWEN). So, they are obviously evaluating their options.

Gendell & Tontine specialize in macro investing and take very large, concentrated positions in companies he feels will benefit from those macro themes. Additionally, he will take on an activist role when necessary, to ensure shareholder returns. The fund has posted returns in excess of 100% in both 2003 and 2005. Conversely, this year has been the year from hell for Tontine. Recently, they announced they would be closing two of their hedge funds: Tontine Capital LP and Tontine Capital Partners LP. Two of Tontine's funds will remain open: Tontine-25 and Tontine Financial. It has definitely been an astonishing year for Gendell, whose Tontine firm is named after an annuity invented by Lorenzo de Tonti. In such an annuity, investors contribute and collect dividends. As investors each die off, their share is left to the remaining partners. Therefore, the last man alive receives all the money. Gendell's desire is clearly to be that 'last investor' remaining. Such a goal becomes slightly ironic when you consider his firm suffered monumental losses and almost 'died' this past year. Gendell explains the turmoil they faced in his October letter to investors (.pdf format).


Taken from Google Finance,

Patrick Industries is "a manufacturer and supplier of building products and materials to the manufactured housing and recreational vehicle industries. In addition, the Company is a supplier to certain other industrial markets, such as kitchen cabinet, furniture manufacturing, office furniture, commercial fixtures and furnishings, marine, architectural, and the automotive aftermarket."

Broadwind "formerly Tower Tech Holdings Inc., through Tower Tech Systems, Inc. (Tower Tech), is engaged in the manufacturing of fabricated towers for wind turbines that are sold to a limited number of customers for use in the support of wind turbines. These wind turbines are used in the generation of electricity throughout the United States. It offers customers wind tower support structure and monopiles."

Tontine Associates (Jeffrey Gendell): Hedge Fund Tracking - 13F Filing Q3 2008

This is the 3rd Quarter 2008 edition of our ongoing hedge fund portfolio tracking series. Before reading this update, make sure you check out the preface to the series we're doing on Hedge Fund 13F filings here.


Next up is Tontine Associates. Founded 11 years ago, Tontine is a $6 billion firm ran by Jeffrey Gendell. Gendell graduated from Duke and worked in Corporate Finance for Smith Barney. He specializes in macro investing and takes very large, concentrated positions in companies he feels will benefit from those macro themes. Additionally, he will take on an activist role when necessary, to ensure shareholder returns. The fund has posted returns in excess of 100% in both 2003 and 2005. Conversely, this year has been the year from hell for Tontine. Recently, they announced they would be closing two of their hedge funds: Tontine Capital LP and Tontine Capital Partners LP. Two of Tontine's funds will remain open: Tontine-25 and Tontine Financial. Tontine was -65.7% for the month of October and was -76.8% for the year at that time, as we noted in our post on hedge fund performance numbers. It has definitely been an astonishing year for Gendell, whose Tontine firm is named after an annuity invented by Lorenzo de Tonti. In such an annuity, investors contribute and collect dividends. As investors each die off, their share is left to the remaining partners. Therefore, the last man alive receives all the money. Gendell's desire is clearly to be that 'last investor' remaining. Such a goal becomes slightly ironic when you consider his firm suffered monumental losses and almost 'died' this year. Gendell explains the turmoil they faced in his October letter to investors (.pdf format).


The following were their long equity, note, and options holdings as of September 30th, 2008 as filed with the SEC. All holdings are common stock unless otherwise denoted.


Some New Positions (Brand new positions that they initiated in the last quarter):
Navistar (NAV)
Ultra Financials ETF (UYG)
OM Group (OMG)
General Cable (BGC)
Myr Group (MYRG)
Mainsource Financial (MSFG)
Marshall & Isley (MI)
First Horizon (FHN)
First Midwest (FMBI)
Summit Financial (SMMF)
National City (NCC) Calls


Some Increased Positions (A few positions they already owned but added shares to)
Emcor (EME): Increased position by 44.5%
Perini (PCR): Increased position by 33%
AK Steel (AKS): Increased position by 30%
Graftech (GTI): Increased position by 19%
Citigroup (C) Calls: Increased position by 11%


Some Reduced Positions (Some positions they sold some shares of - note not all sales listed)
Foster Wheeler (FWLT): Reduced position by 50%
Goodyear Tire & Rubber (GT): Reduced position by 32%
KBR (KBR): Reduced position by 28%
Cliffs Natural Resources (CLF): Reduced position by 23.5%
DST Systems (DST): Reduced position by 22%
Quanta Services (PWR): Reduced position by 18%
Trinity Industries (TRN): Reduced position by 18%
Trueblue (TBI): Reduced position by 16%
Shaw Group (SGR): Reduced position by 15%
AMR (AMR): Reduced position by 13%
A.O. Smith Corp (AOS): Reduced position by 13%


Removed Positions (Positions they sold out of completely)
Marsh & McLennan (MMC) Calls
Meritage Homes (MTH)
Citizens Republic (CRBC)
BCSB Bankcorp (BCSB)
Firstfed Financial (FED)
Meta Financial (CASH)
Astoria (AF)
Hawkins (HWKN)
New York Community Bancorp (NYB)
United Bankshares (UBSI)
American International Group (AIG) Calls
Community Bank System (CBU)
Horton DR (DHI)
Downey Financial (DSL)
Koppers Holdings (KOP)
Centex (CTX)
Ryland Group (RYL)
National City (NCC)
Toll Brothers (TOL)
AZZ (AZZ)
Englobal (ENG)
Timken (TKR)
Goldman Sachs (GS)
M&T Bank (MTB)
Ishares Russell 2000 (IWM)
Spdr S&P 500 ETF (SPY)



Top 20 Holdings (by % of portfolio)

1. Quanta Services (PWR): 4.6% of portfolio
2. Bank of America (BAC) Calls: 3.7% of portfolio
3. Trinity Industries (TRN): 3.5% of portfolio
4. Thomas & Betts (TNB): 3.3% of portfolio
5. AMR Corp (AMR): 3.2% of portfolio
6. AK Steel (AKS): 3% of portfolio
7. Cliffs Natural Resources (CLF): 2.8% of portfolio
8. Navistar (NAV): 2.8% of portfolio
9. Exide Technologies (XIDE): 2.7% of portfolio
10. Shaw Group (SGR): 2.5% of portfolio
11. KBR (KBR): 2.3% of portfolio
12. Integrated Electrical Services (IESC): 2.3% of portfolio
13. Goodyear Tire & Rubber (GT): 2.1% of portfolio
14. Emcor (EME): 2% of portfolio
15. Esco Technologies (ESE): 1.9% of portfolio
16. Hexcel (HXL): 1.8% of portfolio
17. Enersys (ENS): 1.8% of portfolio
18. Graftech (GTI): 1.6% of portfolio
19. DST Systems (DST): 1.49% of portfolio
20. Citigroup (C) Calls: 1.48% of portfolio

Assets from the collective long US equity, options, and note holdings were $10.6 billion last quarter and were $6.5 billion this quarter. They saw a massive drop-off in collective assets mainly due to poor performance. It is also worth mentioning that ever since the 13F filing has come out, Tontine has been active in filing various 13D and 13G forms which detail changes in their ownership of various companies listed above. We will also be covering these position adjustments over the next few days so that everything ties into a cohesive whole. Additionally, Tontine has been seeking options for positions in which they are the largest shareholder, including: Miscor Group Ltd (MIGL), Broadwind Energy (BWEN), Exide Technologies (XIDE), Neenah Enterprises Inc (NENA), Integrated Electrical Services Inc (IESC), Patrick Industries (PATK), Innospec Inc (IOSP), and Westmoreland Coal Co (WLB). Tontine has had a hectic year, to say the least. Please note that we have not detailed changes to every single position in this update, but we have covered all the major moves. Also, keep in mind that these filings only include long equity, notes, and options holdings. They do not reflect their cash, short portions, or holdings in other markets (currency, commodities, debt, foreign markets, private equity etc). This is just one of many funds in our hedge fund tracking series in which we're tracking 35+ prominent funds. The other funds we've already covered include:

• Timothy Barakett's Atticus Capital
• Whitney Tilson's T2 Partners
• Peter Thiel's Clarium Capital
• Bill Ackman's Pershing Square
• Bret Barakett's Tremblant Capital
• John Paulson's Paulson & Co
• David Einhorn's Greenlight Capital
• Dan Loeb's Third Point
• Paul Tudor Jones' Tudor Investment Corp
• Louis Bacon's Moore Capital Management
• Bruce Kovner's Caxton Associates
• George Soros Soros Fund Management
• Chase Coleman's Tiger Global
• Stephen Mandel's Lone Pine Capital
• Lee Ainslie's Maverick Capital
• John Griffin's Blue Ridge Capital
• Andreas Halvorsen's Viking Global
• Chris Shumway's Shumway Capital Partners
• Touradji Capital (Paul Touradji)
• Eric Mindich's Eton Park Capital
• Barry Rosenstein's Jana Partners
• Seth Klarman's Baupost Group
• Art Samberg's Pequot Capital Management
• Ricky Sandler's Eminence Capital
• Thomas Steyer's Farallon Capital Management
• Harbinger Capital Partners (Philip Falcone)
  

Overall, its been one of the worst years ever for hedge funds, as we noted in our new November hedge fund performance number update. Thus, the recent moves they've made in their portfolios become all the more interesting given the way the market has played out.

More on Gendell, Tontine, & hedge funds:
- Tontine to close 2 funds
- Tontine's Q2 portfolio
- Tontine October letter to investors
- Prominent Hedge Fund manager interviews
- Hedge Fund investor letters
- Hedge Fund Rankings
- November hedge fund performance numbers
- October hedge fund performance numbers

Tontine Associates to Close Two Hedge Funds

As I twittered out yesterday, Tontine Associates LLC, ran by Jeffrey Gendell, is said to be liquidating 2 of its hedge funds: Tontine Capital LP and Tontine Capital Partners LP. Taken from Bloomberg,

"Gendell gave no timetable for unwinding the funds, Tontine Capital Partners LP and Tontine Partners LP, during a conference call yesterday with clients, according to the people, who asked not to be named because the information is private. Options for raising cash include selling the funds' investments privately or pushing the companies in which they are the biggest shareholder to sell themselves. `The combination of falling commodity prices, massive anticipated hedge-fund redemptions and the seizing up of the credit markets cause an enormous dislocation in our portfolios,'' Gendell, 49, wrote in a letter to clients last month. The firm managed $7 billion at the end of 2007."

The good news, if you want to call it that, is that 2 of Tontine's funds will remain open: Tontine-25 and Tontine Financial. As we noted in our October hedge fund performance update, Tontine was -65.7% in October and now down an astonishing 76.8% for the year. You can view the long-side of their portfolio here, which lists many of the positions they'll have to liquidate. And, all of this news comes as they had just taken a 6.16% ownership stake in Myr Group (MYRG).

We also get word that they're exploring options for the possible liquidation of positions.

"For eight companies in which Tontine is the largest holder, the firm may try to sell its stake privately to another buyer, or push the company to put itself on the block, according to documents filed yesterday with the Securities and Exchange Commission. The eight companies are: Miscor Group Ltd (MIGL), Broadwind Energy (BWEN), Exide Technologies (XIDE), Neenah Enterprises Inc (NENA), Integrated Electrical Services Inc (IESC), Patrick Industries (PATK), Innospec Inc (IOSP), and Westmoreland Coal Co (WLB). Tontine may also transfer its shares in these companies to investors, the filings said."

Source: CNBC's David Faber & Bloomberg

Tontine Partners Discloses 6.16% Stake in Myr Group (MYRG) - 13G Filing

In a 13G filed with the SEC last week, hedge fund Tontine Partners has disclosed their 6.16% stake in Myr Group (MYRG). This is a new position for them, as they previously did not show a stake in it as of June 30th in their most recent 13F filing. Jeffrey Gendell's Tontine Partners were -59.30% in September and are now -66.7% for the year. You can check out more hedge fund performance numbers that we've accumulated here. And, you can view the detailed list of Tontine Partners' portfolio holdings here.

Taken from Google Finance, MYR Group (MYRG) "is a specialty contractor serving the electrical infrastructure market in the United States. The Company is a national contractor, servicing the transmission and distribution (T&D) sector of the United States electric utility industry. It also provides commercial and industrial electrical contracting services in the western United States. Its T&D customers include more than 125 electric utilities, cooperatives and municipalities nationwide. Its range of services includes design, engineering, procurement, construction, upgrade, maintenance and repair services with a particular focus on construction, maintenance and repair throughout the continental United States."

Hedge Fund Tracking: Tontine Partners (Jeffrey Gendell) 13F

(Note: Before reading this update, make sure you check out the preface to the series I'm doing on Hedge Fund 13F's here)

Well, its time for us to get a little peak at what the big boys have been up to over the past few months. While most 13f's won't come out until later in the week, Jeffrey Gendell's 13F is already out so let's get right to it. If you're unfamiliar with Gendell and his Tontine Partners, then here's what you need to know. Founded 11 years ago, Tontine is a $10 billion fund ran by Jeffrey Gendell. He specializes in macro investing and takes very large, concentrated positions in companies he feels will benefit from those macro themes. Additionally, he will take on an activist role when necessary, to ensure shareholder returns. The fund has posted returns in excess of 100% in both 2003 and 2005.

So, let's get right down to it... what was Jeffrey Gendell up to this past quarter? The following is Tontine Partners' current holdings as of June 30th 2008 as released in their most recent 13F filing with the SEC. I've compared the positions in this most recent 13F to last quarter's 13F and here's what the breakdown looks like:

New Positions: (in no particular order)
Altra Holdings (AIMC) 1,272,832 shares
American Elec Technologies (AETI) 14,899 shares
Argan (AGX) 161,033 shares
DST Sys (DST) 2,233,158 shares
Itron (ITRI) 704,758 shares
Ladish (LDSH) 877,751 shares
Peoples Community Bancorp (PCBI) 90,183
Tetra Tech (TTEK) 3,216,197 shares
Thermadyne Holdings (THMD) 1,152,168 shares
Thomas and Betts (TNB) 5,766,719 shares
YRC Worldwide (YRCW) 2,746,171 shares


Added to:
Chemtura Corp (CEM) increased position by 313%
Satcon Technology (SATC) increased position by 165%
JP MorganChase (JPM) increased position by 153%
LSB Industries (LXU) increased position by 113%
Goldman Sachs (GS) increased position by 109%
Emcor Group (EME) increased position by 70%
US Concrete (RMIX) increased position by 64%
Patrick Industries (PATK) increased position by 49%
Accuride Corp (ACW) increased position by 46%
Tierone Corp (TONE) increased position by 45%
Mastec (MTZ) increased position by 45%
Sterling Financial (STSA) increased position by 39%
Goodyear Tire (GT) increased position by 28%
Sun Micro (JAVA) increased position by 22%
Foster LB Co (FSTR) increased position by 22%
Maxwell Technologies (MXWL) increased position by 16%
KB Home (KBH) increased position by 15%
Beazer Homes (BZH) increased position by 13%
Gentek (GETI) increased position by 11%
Pulte Homes (PHM) increased position by 9%
Elmira Savings Bank (ESBK) increased position by 9%
MI Homes (MHO) increased position by 8%
Merrill Lynch 9MER) increased position by 7%
Brush Engineered Materials (BW) increased position by 6%
Twin Disc (TWIN) increased position by 6%
Synalloy (SYNL) increased position by 5%
Perini (PCR) increased position by 5%
Sun Bancorp (SNBC) increased position by 5%
Toll Bros (TOL) increased position by 3%
Polyone (POL) increased position by 2%
PAB Bankshares (PABK) increased position by 2%
US Airways Group (LCC) increased position by 1%
Tenneco (TEN) increased position by 0.66%
AZZ Inc (AZZ) increased position by 0.60%
QCR Holdings (QCRH) increased position by 0.11%
Preformed Line Products (PLPC) increased position by 0.03%


Reduced Positions:
National Penn (NPBC) reduced by 94%
Astoria Financial (AF) reduced by 90%
Beneficial Mut Bancorp (BNCL) reduced by 90%
Koppers Holdings (KOP) reduced by84%
New York Community Bancorp (NYB) reduced by 78%
Meritage Homes (MTH) reduced by 69%
Citizens Rep Bancorp (CRBC) reduced by 67%
BB and T (MSDXP) reduced by 66%
Community Bk Sys (CBU) reduced by 63%
Georgia Gulf (GGC) reduced by 60%
Firstfed Financial (FED) reduced by 59%
National City (NCC) reduced by 57%
Central Pac Finl Corp (CPF) reduced by 47%
Northwest Bancorp (NWSB) reduced by 45%
Susquehanna Bancshares (SUSQ) reduced by 45%
Powersecure Intl (POWR) reduced by 45%
Amcore (AMFI) reduced by 44%
Citigroup (C) reduced by 43%
Graftech (GTI) reduced by 42%
First Merchants (FRME) reduced by 42%
First St Bancorp (FSNM) reduced by 41%
US Steel (X) reduced by 37%
Ameriserv Financial (ASRV) reduced by 35%
Esmark (ESMK) reduced by 34%
DR Horton (DHI) reduced by 34%
Provident NY Bancorp (PBNY) reduced by 33%
1st Source (SRCE) reduced by 32%
US Lime and Minerals (USLM) reduced by 32%
Associated Banc Corp (ASBC) reduced by 32%
Meta Financial Group (CASH) reduced by 30%
Webster Financial Corp (WBS) reduced by 29%
Ryland Group (RYL) reduced by 29%
Laporte Bancorp (LPSB) reduced by 29%
KBR (KBR) reduced by 27%
Bank of America (BAC) reduced by 26%
TRC (TRR) reduced by 24%
Whitney Holding Corp (WTNY) reduced by 22%
Ameris Bancorp (ABCB) reduced by 22%
Columbus Mckinnon (CMCO) reduced by 21%
AK Steel (AKS) reduced by 18%
United Bankshares Inc (UBSI) reduced by 16%
M And T Bank Corp (MTB) reduced by 15%
Centex (CTX) reduced by 15%
Southern Mo Bancorp (SMBC) reduced by 15%
Downey Financial (DSL) reduced by 12%
Rurban Financial (RBNF) reduced by 12%
Independent Bk Corp Mich (IBCP) reduced by 12%
Colony Bankcorp (CBAN) reduced by 12%
Camco Financial (CAFI) reduced by 11%
North American Energy (NOA) reduced by 11%
Foster Wheeler (FWLT) reduced by 10%
Grupo TMM (TMM) reduced by 9%
URS Corp (URS) reduced by 8%
Champion Enterprises (CHB) reduced by 8%
Ohio Vy Banc Corp (OVBC) reduced by 7%
First Bancshares (FBMS) reduced by 7%
LNB Bancorp (LNBB) reduced by 7%
Metrocorp Bancshares (MCBI) reduced by 6%
Wesbanco (WSBC) reduced by 6%
MB Financial (MBFI) reduced by 5%
TF Financial (THRD) reduced by 5%
Monarch Community Bancorp (MCBF) reduced by 5%
Provident Financial (PROV) reduced by 4%
Shaw Group (SGR) reduced by 4%
Integra Bank Corp (IBNK) reduced by 4$
Oreleans Homebuilders (OHB) reduced by 3%
Tradegar (TG) reduced by 3%
Iberiabank (IBKC) reduced by 3%
Teche Holding (TSH) reduced by 3%
First Financial Svc Corp (FFKY) reduced by 2.5%
Independence Fed Savings Bank (IFSB) reduced by 2%
HMN Financial (HMNF) reduced by 2%
Centrue Financial (TRUE) reduced by 2%
Mid South Bancorp (MSL) reduced by 2%
1st Independence Financial (FIFG) reduced by 2%
Princeton National (PNBC) reduced by 1.5%
Fidelity Bancorp (FSBI) reduced by 1.5%
Lincoln Bancorp (LNCB) reduced by 1.5%
Ameriana Bancorp (ASBI) reduced by 1.4%
Timken (TKR) reduced by 1.2%
CFS Bancorp (CITZ) reduced by 1.11%
MFB Corp (MFBC) reduced by 0.88%
Park Bancorp (PFED) reduced by 0.82%
First Defiance Financial (FDEF) reduced by 0.79%
Central bancorp (CEBK) reduced by 0.72%
Mutualfirst Financial (MFSF) reduced by 0.72%
Hexcel (HXL) reduced by 0.55%
Hawthorn Bancshares (HWBK) reduced by 0.43%
Citizens First Bancorp (CTZN) reduced by 0.4%
River Valley Bancorp (RIVR) reduced by 0.3%
First Keystone Financial (FKFS) reduced by 0.2%
First Banctrust (FBTC) reduced by 0.2%
Northeast Bancorp (NBN) reduced by 0.2%
New Hampshire Thriftbancshares (NHTV) reduced by 0.16%
Community Cap Corp (CPBK) reduced by 0.14%
Parkvale Financial (PVSA) reduced by 0.1%
Capital Bank Corp (CBKN) reduced by 0.1%
Premier Financial Bancorp (PFBI) reduced by 0.1%
HF Financial (HFFC) reduced by 0.1%
Provident Community Bancshares (PCBS) reduced by 0.05%
Southern Community Financial (SCMF) reduced by 0.05%
PVF Capital (PVFC) reduced by 0.01%
LSB Corp (LSBX) reduced by 0.01%


Removed Positions:
Positions Tontine Partners sold out of completely
American International Group (AIG)
Banctrust Financial Group (BTFG)
BCSB Bankcorp (BCSB)
BNC Corp (BNCC)
Capital Corp of the West (CCOW)
Capital One (COF)
Chart Inds Inc (GTLS)
City Hldg Co (CHCO)
Comerica (CMA)
Dime Community Bancshares (DCOM)
FNB Corp (FNBN)
First Niagara Financial (FNG)
Fox Chase Bancorp (FXCB)
Headwaters (HW)
Huntington Bancshares (HBAN)
Independent Bk Corp (INDB)
Instituform Technologies (INSU)
K Tron (KTII)
Mainsource Financial Group (MSFG)
MBIA (MBI)
Mercantile Bk Corp (MBWM)
Navigant Consulting (NCI)
Olin Corp (OLN)
Peoples Bancorp Auburn
Peoples Utd Financial (PBCTD)
PFF Bancorp (PFB)
Pinnacle Bankshares (PLE)
PNC Financial Services (PNC)
Powell Industries (POWL)
Quality Distr Inc (QLTY)
Sovereign Bancorp (SOV)
Standex International (SXI)
Superior Bancorp (SUPR)
Team Ag (TISI)
Tetra Technologies (TTI)
Wachovia (WB)
Washington Mutual (WM)
Willow Financial (WFBC)
Yadkin Finl Corp (YAVY)


Positions with no change:
Ada Es Inc (ADES)
Cleveland Cliffs (CLF) - 2 for 1 Stock Split (did not increase holding)
Advanced Energy Inds (AEIS)
Ameron (AMN)
AMR Corp (AAR)
Astec Industries (ASTE)
Badger Meter (BMI)
Baker Michael Corp (BKR)
CCF Holding Co (CCFH)
Ceco Environmental (CECE)
Channell (CHNL)
Comfort Sys (FIX)
Community Cent Bank Corp (CCBD)
Community Shores Bank Corp (CSHB)
Cooperative Bankshares (COOP)
Core Molding Technologies (CMT)
Dearborn Bancorp (DEAR)
Dycom (DY)
Ecology and Environment (EEI)
Enersys (ENS)
Englobal (ENG)
Esco Tecnologies (ESE)
Exide Technologies (XIDE)
Ferro Corp (FOE)
Fidelity Southern (LION)
First community Corp (FCC))
First Fed Northern Michigan Bancorp (FFNM)
First Franklin Corp (FFHS)
Furmanite Corp (FRM)
Gehl (GEHL)
Great Lakes Dredge and Dock (GLDD)
Greenbrier Cos (GBX)
Hardinge (HDNG)
Hawkins (HWKN)
Hopfed Bancorp (HFBC)
Horizon Bancorp (HBNC)
Innospec (IOSP)
Insteel (IIIN)
Internet Cap Group (ICGE)
Jacksonville Bancorp (JAXB)
Jefferson Bancshares (JFBI)
KMG Chemicals (KMGB)
Landmark Bancorp (LARK)
LCC Intl (LCCI)
Magnetek (MAG)
Material Sciences (MSC)
Matrix Service Co (MTRX)
MBT Financial (MBTF)
Meadow Vy Corp (MVCO)
Met Pro (MPR)
MFRI (MFRI)
Nacco (NC)
National Technical (NTSC)
North Central Bancshares (FFFD)
Ohio Legacy (OLCB)
Otter Tail (OTTR)
Peoples Bancorp of North Carolina (PEBK)
Perma Fix Environmental (PESI)
Pike Elec (PEC)
Portec Rail (PRPX)
Quanta Services (PWR)
Shiloh (SHLO)
Sifco (SIF)
Smith A O (AOS)
Supreme Industries (STS)
Tower Financial (TOFC)
Trinity Industries (TRN)
United Bancshares (UBOH)
Versar (VSR)
Wabash National (WNC)
Westmoreland Coal (WLB)


Top 10 holdings by % of portfolio:
1. X (Top Holding)
2. CLF
3. KBR
4. PWR
5. AKS
6. SPY
7. XIDE
8. SGR
9. TRN
10. FWLT

-----------------------------------------

Breakdown: Tontine Partners' 13F can be summed up in 3 words: Regional Bank Clusterf*ck. He has a ton of them, but they aren't very big positions relative to his whole portfolio. For the most part though, Gendell was selling all his financials, including the regionals. The only major financial plays he has left anyways are smaller positions. And, his only positions of major size in that sector are through calls. So, I'd have to think that he saved himself some serious money by exiting/reducing a number of those regional positions, as they could have really put him in the house of pain. It should be noted that he made large additions to the big banks such as JPM and GS.

The next major trend I noticed in his portfolio was that he is highly levered up with steel holdings. While he did do some position size reducing across a few of his steel names (X, AKS), one still has to wonder how he's faring right now given the recent selloff in steel? Whether he has sold anymore substantial positions is the real question. Because, if he hasn't, the recent drop in steel stocks has undoubtedly affected his portfolio in a negative way. Although he did reduce his position sizes.... he still has MASSIVE stakes in the steel names. After all, the top 2 holdings of his fund (and 3 out of the top 10 holdings) as of June 30th were steel stocks. So, he definitely profited handsomely from these steel names by nearly top-ticking the market, selling huge chunks before the peak in July. But, he's since given back much of these gains, assumming he still holds the steel names. This is actually a very unique situation where his 13F doesn't really help us. These holdings were as of June 30th and that was conveniently around the same time steel stocks started topping out. So, the real action in the steel names has been occuring outside of the time period the 13F covers (ie: the past month and a half). And, he is either taking a lot of pain from these massive steel holdings, or he has been partly responsible for the massive selloff in the steel names. We can only guess at this point. We'll have to wait until the next round of filings to find out what he's been up to, unfortunately. The timing overlap on this situation really prevents us from gaining much insight.

But, from this past quarter, we can take away the fact that Gendell definitely had strong conviction in steel and infrastructure names. After all, practically all of his top 10 holdings are concentrated in those 2 sectors. One other top 10 holding I wanted to touch on though is his #4 holding, Quanta Services (PWR). This chart has been breaking out and I have seen this name popping up more and more around financial sites. Plus, it fits right into his whole infrastructure theme. So, it doesn't surprise me at all to see that Gendell has already been in this name for quite some time. After all, he's a pretty smart guy. (Keep in mind: although some of these top holdings are indeed large stakes, some/many have experienced price appreciation, boosting their % share of the portfolio even more.)

Tontine Partners' most interesting move(s)? Whatever he has done in the past month and a half that we can't see. No joke. Since such a massive allocation of his portfolio was dedicated to steel stocks, his fund's performance has no doubt been affected by whatever decisions he has made recently. If he has been one of the many selling steel names, then he is in great shape. If not, then he's screwed. Us plebeians will have to wait until the next round of 13F's to find out Gendell's steel fate.

13F Source: SEC

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Check back in during the coming weeks as I analyze the portfolio changes to numerous big name hedge funds such as Lone Pine Capital (Steve Mandel), Moore Capital Management (Louis Bacon), Tudor Investment Corp (Paul Tudor Jones), Blue Ridge Capital (John Griffin), & many many more.