Eminence Capital Boosts Formula One Position

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of Formula One (FWONK).  Per the filing, Eminence now owns 5.4% of the company with over 10.86 million shares. 

This is up from the 8.58 million shares they owned at the end of 2017.  The filing was made due to activity on March 19th.

Per Liberty Media's site, Formula One is "an iconic global motorsports business."

We've also highlighted another stock that Eminence Capital has been buying recently.

Eminence Capital Increases Papa John's Pizza Position

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of Papa John's Pizza (PZZA).  Per the filing, Eminence now owns 6.5% of the company with over 2.19 million shares. 

The filing was made due to portfolio activity on February 28th.  This means they've increased their position size up from the 568,026 shares they owned at the end of 2017.

Per Google Finance, Papa John's Pizza is "operates and franchises pizza delivery and carryout restaurants and, in certain international markets, dine-in and delivery restaurants under the trademark Papa John's. The Company operates through five segments: domestic Company-owned restaurants, North America commissaries, North America franchising, international operations and all other business units. North America is defined as the United States and Canada. Domestic is defined as the contiguous United States. International franchisees are defined as all franchise operations outside of the United States and Canada. As of December 25, 2016, there were 5,097 Papa John's restaurants in operation, consisting of 744 Company-owned and 4,353 franchised restaurants operating domestically in all 50 states and in 45 countries and territories. It offers pizza along with side items, including breadsticks, cheesesticks, chicken poppers and wings, dessert items and canned or bottled beverages. "

Eminence Capital Starts Ellie Mae Position

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of Ellie Mae (ELLI).  Per the filing, Eminence now owns 6% of the company with 2.06 million shares. 

This is a brand new equity stake for the hedge fund as they did not own any shares at the end of the second quarter.  The filing was made due to activity on October 27th.

We've also highlighted another stock Eminence has been buying recently.

Per Google Finance, Ellie Mae is "a provider of on-demand software solutions and services for the residential mortgage industry in the United States. Banks, credit unions, mortgage lenders and mortgage brokers use the Company's Encompass mortgage management solution to originate and fund mortgages. The Company's Encompass software is an enterprise solution that handles functions involved in running the business of originating mortgages, including customer relationship management; loan processing; underwriting; preparation of application, disclosure and closing documents; funding and closing the loan for the borrower; compliance with regulatory and investor requirements, and overall enterprise management. It delivers Encompass software in an on-demand Software-as-a-Service (SaaS). It also hosts the Ellie Mae Network, an electronic platform that allows Encompass users to conduct electronic business transactions with investors and service providers they work with in order to process and fund loans."

Eminence Capital Increases Arris Group Stake

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding its stake in Arris Group (ARRS).  Per the filing, Eminence now owns 5.3% of the company with just over 10 million shares.

This is an increase of 858,147 shares as they previously owned 9.15 million shares at the end of the second quarter.  This most recent filing was made due to portfolio activity on September 12th.

For more on this hedge fund, you can view other portfolio activity from Eminence Capital here.

Per Google Finance, Arris Group is "a media entertainment and data communications solutions provider. The Company operates in two segments: Customer Premises Equipment (CPE), and Network & Cloud (N&C). The Company enables service providers, including cable, telephone, and digital broadcast satellite operators, and media programmers to deliver media, voice and Internet Protocol (IP) data services to their subscribers. It is engaged in offering set-tops, digital video and IP television (IPTV) distribution systems, broadband access infrastructure platforms, and associated data and voice CPE, which it also sells directly to consumers through retail channels. Its solutions are complemented by an array of services, including technical support, repair and refurbishment, and system design and integration. The CPE segment consists of CPE Products-Video and CPE Products-Broadband. The N&C segment consists of Infrastructure Products, Cloud Software and Global Services."

Eminence Capital Boosts CyberArk Software Stake

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of CyberArk Software (CYBR). Per the filing, Eminence now owns 5.4% of the company with over 1.88 million shares.

This is an increase of 1.47 million shares since the end of the first quarter when they previously owned 415,460 shares. The latest filing was due to activity on July 14th.

You can view other recent portfolio activity from Eminence Capital here.

Per Google Finance, CyberArk Software is "an Israel-based provider of information technology (IT) security solutions that protects organizations from cyber-attacks. The Company's software solutions are focused on protecting privileged accounts, which have become a critical target in the lifecycle of cyber-attacks. The Company's Privileged Account Security Solution consists of various products, such as Shares Technology Platform, Enterprise Password Vault, SSH Key Manager, Privileged Session Manager, Privileged Threat Analytics, Application Identity Manager, CyberArk-Conjur, Endpoint Privilege Manager and On-Demand Privileges Manager. The Company's products provide protection against external and internal cyber threats and enables detection and neutralization of attacks. The Company's Enterprise Password Vault provides customers with a tool to manage and protect all privileged accounts across an entire organization, including physical, virtual or cloud-based assets."

Eminence Capital Boosts Cornerstone OnDemand Stake

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of Cornerstone OnDemand (CSOD).  Per the filing, Eminence now owns 5.4% of the company with over 3 million shares.

This is an increase of 714,564 shares since the end of the first quarter when they owned 2.34 million shares.  The filing was made due to activity on June 29th.

Per Google Finance, Cornerstone OnDemand is "a cloud computing company. The Company provides learning and human capital management software, delivered as Software-as-a-Service (SaaS). Its human capital management platform combines the talent management solutions with analytics and human resources (HR) administration solutions to enable organizations to manage the employee lifecycle. Its enterprise human capital management platform consists of four product suites: its Recruiting suite, which helps organizations to source and attract candidates, assess and select applicants, onboard new hires and manage the entire recruiting process; its Learning suite, which enables clients to manage training and development programs; its Performance suite, which provides tools to manage goal setting, performance reviews, compensation management and succession planning, and HR Administration suite, which supports employee records administration, workforce planning and compliance reporting."

Eminence Capital Trims Autodesk Position

Ricky Sandler's hedge fund firm Eminence Capital has filed an amended 13D with the SEC regarding its stake in Autodesk (ADSK).  Per the filing, Eminence now owns 3.6% of Autodesk with 8.01 million shares.

Per the filing, Eminence sold 3.47 million shares on March 16th at $88.08.

It notes they sold "solely for portfolio management reasons.  Due to the significant price appreciation of the Shares since their original investment the Reporting Persons’ position in the Shares had significantly increased as a percentage of total assets under management. The Reporting Persons’ position in the Shares remains the largest position owned by the Reporting Persons. The Reporting Persons are pleased with the progress that has been made in both the Issuer’s business model transition and operating fundamentals and remain confident in the Issuer’s ability to continue to create value for shareholders."

We've highlighted other recent portfolio activity from Eminence Capital here.

Per Google Finance, Autodesk is "a design software and services company, offering customers productive business solutions through technology products and services. The Company serves customers in the architecture, engineering and construction; manufacturing, and digital media, consumer and entertainment industries. It operates in four segments: Architecture, Engineering and Construction (AEC), Platform Solutions and Emerging Business (PSEB), Manufacturing (MFG), and Media and Entertainment (M&E). The PSEB, AEC and MFG segments offer a range of services, including consulting, support and training. The M&E segment offers software products to professionals, post-production facilities and broadcasters for a range of applications. Its software products enable its customers to experience their ideas before they are real by allowing them to imagine, design and create their ideas and to visualize, simulate and analyze real-world performance in the design process by creating digital prototypes."

Eminence Capital Ups Rexnord Stake

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of Rexnord (RXN).  Per the filing, Eminence now owns 6.8% of the company with over 7 million shares.

This is up from the 808,426 shares they owned at the end of 2016, so a significant increase.  The filing was made due to activity on February 27th.

You can view other recent portfolio activity from Eminence Capital here.

Per Google Finance, Rexnord is "a multi-platform industrial company. The Company operates through two segments: Process & Motion Control platform, and Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a range of engineered mechanical components used within systems. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. Its Process & Motion Control brands include Rexnord, Rex, Euroflex, Falk, FlatTop, Link-Belt, Thomas and Tollok. The Water Management platform designs, procures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products. Its products are marketed and sold under various brand names, including Zurn, Wilkins and VAG."

Eminence Capital Starts Imperva Position

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of Imperva (IMPV).  Per the filing, Eminence now owns 9.7% of the company with over 3.19 million shares.

This is a newly disclosed equity position for Eminence and the filing was made due to activity on January 31st, 2017.

Per Google Finance, Imperva "provides cyber-security solutions that protect business-critical data and applications whether in the cloud or on premises. The Company operates in the segment of development, marketing, sales, service and support of cyber-security solutions that protect business critical data and applications whether in the cloud or on premises. Its products include its Imperva SecureSphere platform for enterprise data centers, and Imperva Incapsula and Imperva Skyfence offerings for cloud-based security services. Its Imperva SecureSphere platform provides database, file and Web application security across various physical and virtual systems in data centers. Its Imperva Incapsula product line provides cloud-based Website security, denial of service protection and performance solutions. Its Imperva Skyfence product line provides visibility into, and control over, cloud and Software-as-a-Service (SaaS) applications, including shadow information technology (IT)."

Eminence Capital Discloses Restoration Hardware Position

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of Restoration Hardware (RH).  Per the filing, Eminence now owns 3.1% of the company with over 1.25 million shares.

This is a newly disclosed position as the firm did not report owning a stake at the end of 2015 in their latest 13F filing.  The new 13G filing was made due to portfolio activity on February 25th.

Shares of RH have absolutely cratered over the past three months, falling from $105 down to current levels of $38.

Per Google Finance, Restoration Hardware is "The Company, together with its subsidiaries, is a luxury home furnishings retailer that offers various categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, tableware and children's furnishings. These products are sold through the Company's stores, catalogs and Websites. The Company operated a total of approximately 67 retail stores and over 17 outlet stores in approximately 29 states, the District of Columbia and Canada, and had sourcing operations in Shanghai and Hong Kong. The Company's retail stores are located primarily in upscale malls and street locations. The Company operates stores in Alabama, Arizona, California, Colorado, Connecticut, Florida, Massachusetts, Michigan, New York, Pennsylvania, Texas, Tennessee and British Columbia, among others."

Ricky Sandler Long GMCR & ZNGA, Short WAB (Invest For Kids Chicago Presentation)

We're posting up notes from the Invest For Kids Chicago conference 2015.  Next up is Eminence Capital's Ricky Sandler who pitched a long of Keurig Green Mountain Coffee (GMCR).


Ricky Sandler's Invest For Kids Chicago Presentation

•    At 25 launched his own business Fusion Partners. In '98 started Eminence
•    Long idea: GMCR/Keurig Green Mountain.
•    Controversial there is a credible short story. Thinks it’s already priced in and an incredible long opportunity.
•    Two businesses, hot biz (kcups) and Kold with sodas, brand new.
•    Hot platform sell 9MM to 10mm brewers/year and sell 10B to 11B kcups per year.
•    Razor/razorblade model.
•    Significant room for increased household penetration. Current penetration at 21M to 22M households compared to 70MM homes. With a coffeemaker.
•    Think market goes single serve.
•    Industry kcup should grow in the LDD range.
•    $4 of EPS from the hot business in FY15 estimated.
•    Think hot EPS can reach $5 over the next couple years driven by volume growth, $300MM restructuring, normalizing brewer losses form the last holiday season, normalized coffee costs, share buybacks and offsetting some headwinds.
•    Kold launched in September with Coca-Cola. Addressable market thinks its 5x – 10x hot.
•    Reviews are high on quality but negative on price/value.
•    $375 asp per machine and pods more expensive than a can of coke.
•    Not so much price of pod, but thinks the range of pods/products.
•    Think its convenience/choice. Negatives looking at just price.
•    Kold loss 50 cents per share.
•    Trades at 15.5x FY15E sept EPS and 13.5x EPS ex kold.
•    EPS estimates under pressure – poor 2.0 brewer launch execution and K-cup profitability impacted by mix shift. Finally negative reaction to kold.
•    Hot value = 17x -20x hot EPS ($5) or 85-100 plus option value for kold.
•    KO owns 17% at $92. Insiders bought at $90.


•    Loves Baidu (BIDU), and a top five position.


•    Zynga (ZNGA) – mobile gaming. Franchises include Farmville, words with friends.
•    Some think games are obsolete, ZNGA has 75MM active users.
•    Zynga was late to the consumer shift from desktop to mobile making the last two years rough. •    Mobile games for the last year =70% of bookings vs 30% a year ago.
•    Expect new titles over the next 12 months.
•    Trading at 1x sales when backing out SF real estate ($500MM value). $687MM EV.
•    Launch 6 new games, $300MM incremental bookings bringing total bookings to $900MM.
•    KING sold for 2.6x sales, using that valuation = $5.
•    At a 35% margin, ZNGA generate $315MM EBITDA or trading for 2x.
•    Has big infrastructure to support bigger biz. Downside protection by cash and real estate.
•    Top hit potential = $1B rev potential.
•    Mobile gaming is $20B biz. New categories such as esports and real money gaming growing.


•    Wabtec (WAB) – Short.
•    Leading supplier of brakes, electronics and other railroad components to the global rail industry.
•    55% - 60% of EBIT comes from NA freight segment.
•    LT rail is GDPish industry and cyclical.
•    Track record is fantastic – only US listed co whose stock price increased every year for 14 straight years, 19% EPS CAGR form 06 to 15E and hadn’t missed earnings since 09 and 3Q15.
•    Bull thesis – not cyclical, high ROIC/ high market share high after market mix/quality biz.
•    Product mix is opaque due to acquisition strategy.
•    Bulls think EPS will grow double digits for ever.
•    WAB is cyclical and currently at the peak of rail equipment super cycle driven by NA O&G activity.
•    Demand driven by trail traffic, production of new locomotives and freight cars.
•    Rail traffic is weak – CNI talking about laying off employees.
•    Locomotives – NSC storing locomotives, expect it to be up to 200. GE orders dropped significantly, only sold compared 3 the last quarter.
•    Freightcar peak – industry backlog driven by tank cars oil and covered hoppers i.e. frack sand. 40% downside to deliveries.
•    Trading at 20x EPS, 13x EBITDA. Could be peak earnings in FY15. Mid cycle earnings $3.5 - $4. At 16x = $60 or 30% downside.
•    Low short interest, favorable sell side ratings.
•    Consensus calls for positive organic growth.


Check out the rest of the presentations from Invest For Kids Chicago 2015.

Eminence Capital Ups Pandora Stake

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of Pandora Media (P).  Per the filing, Eminence now owns 5.6% of the company with over 12 million shares.

This is up from the around 10 million shares Eminence owned at the end of the second quarter.  The new filing was made due to activity on October 23rd.

We've highlighted other recent portfolio activity from Eminence here.

Per Google Finance, Pandora is "a provider of Internet radio services. The Company offers personalized experience for each of its listeners wherever and whenever they want to listen to radio on a range of smartphones, tablets, computers and car audio systems, as well as a range of other Internet-connected devices. In addition, Pandora offers local and national advertisers to provide targeted messages to its listeners using a combination of audio, display and video advertisements. The Company has operations in the United States, Australia and New Zealand. The Company enables each of its listeners to create up to 100 personalized stations. Its technologies include Music Genome Project, Comedy Genome Project, Playlist Generating Algorithms, Pandora User Experience, Pandora Mobile Streaming, Automotive Protocol, Pandora API and Tv.pandora.com. The Company provides its services through two models, which include Free Service and Pandora One."

For more from this hedge fund manager, check out Ricky Sandler's appearance on Wall Street Week.

Eminence Capital Increases Men's Wearhouse Stake

Ricky Sandler's hedge fund firm Eminence Capital has filed an amended 13D regarding their position in Men's Wearhouse (MW).  Per the filing, Eminence now owns 8.3% of the company with over 4 million shares.

This is up from the 3.19 million shares they owned at the end of the second quarter.  The new filing was made due to activity on September 9th.  They purchased the bulk of their recent shares at $52.43 and $51.10.

If you missed it, Ricky Sandler also recently appeared on Wall Street Week and talked about many of their other positions.

Per Google Finance, Men's Wearhouse is "a specialty retailer of men's suits and a provider of tuxedo rental product in the United States and Canada. It operates in two segments: retail, which offers its products and services through its four retail merchandising brands and Internet Websites. The Company's corporate apparel segment provides corporate clothing uniforms and work wear to workforces."

Eminence Capital's Ricky Sandler on Wall Street Week: KORS, EBAY/PYPL, ZNGA, RGC & More

Ricky Sandler, founder of hedge fund Eminence Capital, was recently interviewed on Anthony Scaramucci's rebooted show Wall Street Week.

Eminence manages $6.5 billion now and has been running for 17 years.  Sandler focuses on "quality value," looking for quality businesses but trading at discount prices.  He likes the intersection of growth and value, focusing on a "growth at a reasonable price" approach.

He likes Michael Kors (KORS) and notes it was a momentum stock that experienced a deceleration and he thinks it's a terrific brand that has opportunity for international expansion, trading at under at 10x PE.

Sandler also touched on eBay (EBAY), which recently split off its payments arm PayPal (PYPL).  The standalone EBAY is now purely an online marketplace.  Sandler says PYPL trades about for 20x earnings when you back out the cash, and it has 20% growth "for as far as the eye can see."

The Eminence founder also talked about gaming plays Zynga (ZNGA), Activision (ATVI), Take Two Interactive (TTW), and Ubisoft (UBI.PA).

Eminence is also short Regal Cinemas (RGC).

We've highlighted some other portfolio activity from Eminence here.

Embedded below is the video of Ricky Sandler's Wall Street Week interview:



For more, be sure to check out Mario Gabelli's interview on Wall Street Week from last week too.

Eminence Capital Reduces Men's Wearhouse Stake

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13D with the SEC regarding its position in Men's Wearhouse (MW).  Per the filing, Eminence now owns 6.6% of the company with over 3.2 million shares.

This is a decrease from the end of the first quarter when they owned over 4.2 million MW shares.  The filing notes they sold the bulk of shares on June 5th at $57.97.

Eminence also recently disclosed a Yelp position.

Per Google Finance, Men's Wearhouse is "a specialty retailer of men's suits and a provider of tuxedo rental product in the United States and Canada. It operates in two segments: retail, which offers its products and services through its four retail merchandising brands and Internet Websites. The Company's corporate apparel segment provides corporate clothing uniforms and work wear to workforces."

Eminence Capital Discloses Yelp Position

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of Yelp (YELP).  Per the filing, Eminence now owns 5.1% of the company with over 3.32 million shares.

This is a newly disclosed equity position for the hedge fund as they did not own any YELP shares as of the end of the first quarter.  The filing was made due to portfolio activity on May 15th.

For more from this hedge fund, head to Eminence Capital's other recent activity.

Per Google Finance, Yelp "connects people with local businesses. The Company’s users have contributed a total of approximately 52.8 million cumulative reviews of almost every type of local business, from restaurants, boutiques and salons to dentists, mechanics and plumbers. Its platform provides local businesses with a range of free and paid services, which help them to engage with consumers at moment when they are deciding where to spend their money."

Eminence Capital Increases GNC Holdings Position

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding its stake in GNC Holdings (GNC).  Per the filing, Eminence now owns 5.2% of the company with over 4.6 million shares.

They've increased their position size by 880,848 shares since the end of the first quarter.  The filing was made due to activity on March 10th.

Per Google Finance, GNC Holdings is "a global specialty retailer of health and wellness products. The Company has three segments: Retail, Franchise and Manufacturing/Wholesale."

You can view previous Eminence portfolio activity here.

Eminence Capital Reveals Darling Ingredients Stake

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of Darling Ingredients (DAR).  Per the filing, Eminence now owns 5% of the company with over 8.26 million shares.

This is a newly disclosed equity position for the fund and the filing was made due to activity on December 17th.

Per Google Finance, Darling Ingredients is "a provider of rendering, cooking oil and bakery waste recycling and recovery solutions. The Company collects and recycles animal by-products, bakery residual and used cooking oil from poultry and meat processors, commercial bakeries, grocery stores, butcher shops, and food service establishments and provides grease trap cleaning services to many of the same establishments."

We've recently highlighted other portfolio activity from Eminence Capital as well.

Eminence Capital Adds To Xoom, Men's Wearhouse Stakes

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G and a 13D with the SEC regarding two of their positions.


Adds To Xoom Stake

First, Eminence has revealed a 6.4% ownership stake in Xoom (XOOM) with over 2.44 million shares. 

This means they've boosted their stake by over 1.57 million shares since the end of the second quarter.  The filing was required due to activity on December 9th.

Per Google Finance, Xoom is "engaged in online international money transfer service. Its customers use Xoom to send money to family and friends in 30 countries. The Company generates revenue from transaction fees charged to customers and from foreign exchange spreads on transactions where the payout currency is other than United States dollars."


Increases Men's Wearhouse Position

Second, Sandler's hedge fund also disclosed a 11.9% ownership stake in Men's Wearhouse (MW) with over 5.7 million shares in an amended 13D filing with the SEC.

Their position size is now larger to the tune of 1.15 million more shares.  The filing was required due to activity on December 16th.

The filing also notes that Eminence's standstill clause (which capped their ownership at 10%) has been amended to 12%.

Per Google Finance, Men's Wearhouse is "a specialty retailer of men's suits and a provider of tuxedo rental product in the United States and Canada. It operates in two segments: retail and corporate apparel."

For more from this manager, you can see what stocks Sandler recommended at the Robin Hood Investors Conference.

Eminence Capital Discloses FNFV Group Stake

Per a 13G filed with the SEC, Ricky Sandler's hedge fund firm Eminence Capital has revealed a new position in FNFV Group (FNFV).  They now own 6.1% of shares via their 5.55 million share position.  The filing was made due to activity on September 30th.

FNFV was spun-off from Fidelity National Financial (FNF) this summer.  Each 'old' share of FNF was converted into a new share of FNF and 0.3333 of a share of the newly created FNFV.  The latter is a tracking stock, and that's what Eminence has now reported a stake in.

We've also posted other recent portfolio activity from Eminence here.

Per Yahoo Finance, FNFV stands for Fidelity National Financial Ventures and it operates as the investment arm of Fidelity National Financial.