MHR Fund Management Files 13D on Titan International

Mark Rachesky's hedge fund MHR Fund Management has filed a 13D with the SEC regarding Titan International (TWI).  Per the filing, MHR now owns 10.9% of the company with 5.84 million shares.

This is a newly disclosed position and the filing was made due to activity on January 9th.  The position is comprised of both common stock as well as $8.1225 July 2014 call options.

The 13D filing contains the standard boilerplate that MHR intends to seek discussions with management concerning the business and operations of the company.


About MHR Fund Management

If you're unfamiliar with this name, here's what you need to know:  prior to founding MHR Fund Management, Rachesky previously worked as a senior investment officer and managing director to Carl Icahn.  

Rachesky received his B.S. in molecular aspects of cancer from the University of Pennsylvania and an M.D. from Stanford University School of Medicine. Additionally, he also holds an MBA from the Stanford Graduate School of Business.



About Titan International

Per Google Finance, Titan International "through its subsidiaries, is engaged in the manufacturing of wheels and tires. The Company operates in three segments: agricultural, earthmoving/construction and consumer. Titan produces a range of specialty products to meet the specifications of original equipment manufacturers (OEMs) and aftermarket customers in the agricultural, earthmoving/construction and consumer markets. Titan’s earthmoving/ construction market includes wheels and tires supplied to the mining industry, while the consumer market includes products for all-terrain vehicles (ATVs) and recreational/utility trailers. The Company’s customers include AGCO Corporation, CNH Global N.V., Deere & Company and Kubota Corporation."

Mark Rachesky's MHR Fund Joins Carl Icahn in Activist Navistar Stake

Today, Mark Rachesky's activist oriented MHR Fund Management filed a Form 3, Form 4 and 13D with the SEC regarding shares of Navistar International (NAV).

Per the activist 13D filing, MHR Fund Management has disclosed a 13.6% ownership stake in Navistar with 9,335,837 shares.  This stake consists of common stock as well as numerous share forward transactions (right to buy) with various counterparties. 

The filing was made due to activity on June 7th.  MHR started acquiring shares of NAV in the open market in late May and the bulk of their purchases came between $26-27 per share.  Their right to buy forward transactions have a price per share of $25.5399.

The 13D contains the standard boilerplate that Rachesky's firm has acquired a stake because it feels the company is undervalued and they may seek to engage with discussions with management.


Carl Icahn Involved Too

Rachesky is now the company's largest shareholder, just ahead of Carl Icahn.  Icahn has also previously filed a 13D on the company. 

It just so happens that Rachesky previously was a managing director for Carl Icahn's investment vehicles as well.  Icahn was recently named as one of the top 25 highest earning hedge fund managers of 2011.

Icahn originally launched his bet on NAV back in late 2011 and he has been the top shareholder until Rachesky came along.  Icahn also recently boosted his stake to almost 12% of the company, purchasing shares around $24.xx.  However, he originally purchased his stake at prices between $35-40.  As such, the bulk of his investment has an unrealized loss at current prices. 

It seems the two activists are angling for a larger industrial giant to take a stake in the company or perhaps partner with Navistar.  Icahn has also been allowed by the company to put his directors up for election to the board this year.

While Icahn has made some progress, it will be interesting to see if the two activist investors' combined forces can spark more change.


About MHR Fund Management

Rachesky received his B.S. in molecular aspects of cancer from the University of Pennsylvania and an M.D. from Stanford University School of Medicine. Additionally, he also holds an MBA from the Stanford Graduate School of Business. Prior to founding MHR Fund Management, Rachesky previously worked as a senior investment officer and managing director to Carl Icahn. 


About Navistar International

Per Google Finance, Navistar is "a manufacturer of International brand commercial and military trucks, IC Bus (IC) brand buses, MaxxForce brand diesel engines, Workhorse Custom Chassis (WCC) brand chassis for motor homes and step vans, and Monaco RV (Monaco) recreational vehicles (RV), as well as a provider of service parts for all makes of trucks and trailers."

Mark Rachesky's MHR Fund Management Goes Activist on Seahawk Drilling (HAWK)

Mark Rachesky's MHR Fund Management has filed an activist 13D with the SEC regarding shares of Seahawk Drilling (HAWKQ). The filing, reflecting portfolio activity on February 16th, indicates MHR has disclosed a 9.8% ownership stake in HAWKQ with 1,173,513 shares. This is not a new position as MHR held the same amount of shares at 2010 year-end.

HAWKQ Selling Assets to Hercules Offshore (HERO)

Rachesky's firm seems to take issue with the debtors of HAWKQ who have fast-tracked a proposed sale transaction with Hercules Offshore (HERO). The proposed sale would result in the debtors receiving $25 million in cash and 22.3 million shares of Hercules common stock in exchange for the sale of substantially all of its assets.

Going Activist: Formation of Equity Committee

MHR has filed in conjunction with Andalusian Capital Partners, FISBC Global Asset Management, and Mercer Park. We'd also point out that Kyle Bass' Hayman Capital disclosed a 8.4% stake in HAWK in a separate and unrelated filing.

Per various exhibits filed with MHR's 13D, we see that they've been granted appointment of an equity committee to secure independent representation for public shareholders "at this crucial stage of these Chapter 11 proceedings, while the Debtors are attempting to fast-track a DIP motion and prearranged sale that equity has not had adequate time to review."

Fund Manager Background

So, we'll have to see what Rachesky has up his sleeve in this regard since his committee formation was granted. Rachesky, prior to founding MHR was a senior investment officer and managing director for Carl Icahn. Needless to say, he's got plenty of experience in the activist realm.

Rachesky earned his B.S. in molecular aspects of cancer from the University of Pennsylvania and an M.D. from Stanford University School of Medicine. Additionally, he earned an MBA from the Stanford Graduate School of Business; the man is a degree-earning machine.

Per Google Finance, Seahawk Drilling was spun-off from Pride International and "operates a jackup rig business that provides contract drilling services to the oil and natural gas exploration and production industry in the Gulf of Mexico."

Be sure to stay up to date with the latest hedge fund filings with our free daily site updates via email or also via RSS reader.

Mark Rachesky's MHR Fund Management Receives Convertible Notes From Emisphere Technologies (EMIS)

MHR Fund Management run by Mark Rachesky recently filed a Form 4 with the SEC in regards to Emisphere Technologies (EMIS). Per the filing, Rachesky's firm received convertible notes on EMIS for reasons we'll discuss below. We see that MHR acquired $1,272,753 worth of convertibles with an exercise price of $3.78 and an exercise date of September 26th, 2012. These convertibles in aggregate represent 336,705 shares of common stock in Emisphere Technologies.

This is not the first time MHR has acquired EMIS convertibles either. Rachesky's firm has owned 11% Senior Secured Convertible Notes since May 16th, 2006. These convertibles have interest "payable in kind semi-annually in arrears through the issuance of the reporting persons of additional convertible notes." As such, MHR has filed this Form 4 with the SEC to disclose the receipt of these additional Convertible Notes as paid-in-kind interest on the notes they already owned. This is also not the only transaction relating to Emisphere for MHR in recent times. As we detailed in June, MHR also acquired warrants on EMIS.

Rachesky received his B.S. in molecular aspects of cancer from the University of Pennsylvania and an M.D. from Stanford University School of Medicine. Additionally, he also holds an MBA from the Stanford Graduate School of Business. Prior to founding MHR Fund Management, Rachesky previously worked as a senior investment officer and managing director to Carl Icahn. While Rachesky was once viewed as Icahn's apprentice, it's intriguing to see them now essentially pitted against one another in a separate position. As we've detailed numerous times before, Icahn has been bidding for Lions Gate Entertainment (LGF), one of MHR Fund Management's largest holdings. We'll continue to watch and see how that one plays out.

Taken from Google Finance, Emisphere Technologies is "a biopharmaceutical company that focuses on a delivery of therapeutic molecules or nutritional supplements using its Eligen Technology".

Be sure to stay up to date with the latest hedge fund movements by receiving our free updates by email or by receiving our free updates via RSS reader.

Mark Rachesky's MHR Fund Management: SEC Filing on Emisphere Technologies

Mark Rachesky's investment firm MHR Fund Management recently filed a Form 4 with the SEC regarding shares of Emisphere Technologies (EMIS). The filing detailed that Rachesky's firm was just issued warrants on Emisphere per a previous agreement. We see that MHR Fund Management received warrants for the right to buy 865,000 shares (in total) with an exercise date of August 21st, 2014 and a conversion price of $2.90. This is the first time we've covered portfolio activity out of MHR Fund Management and we plan on doing so from here on out.

Here's some background for those of you unfamiliar: Mark Rachesky received his B.S. in molecular aspects of cancer from the University of Pennsylvania and an M.D. from Stanford University School of Medicine. As if that wasn't already enough, he also holds an MBA from the Stanford Graduate School of Business. Rachesky previously served as Carl Icahn's senior investment officer and managing director. After that, he went on to found his own firm, MHR Fund Management LLC.

While Rachesky obviously has ties to Icahn it's interesting to see them now essentially pitted against each other in another one of his investments. As we've detailed numerous times before, Icahn has been bidding for Lions Gate Entertainment (LGF), one of MHR Fund Management's largest holdings. So, it will certainly be interesting to watch the master and the apprentice potentially do battle there. (Though, you could easily argue that Rachesky is an apprentice no longer).

Taken from Google Finance, Emisphere Technologies is "a biopharmaceutical company that focuses on a delivery of therapeutic molecules or nutritional supplements using its Eligen Technology."

To see what some of the biggest hedge funds have been up to, make sure to stay updated via our hedge fund tracking series.