New Hedge Fund Wisdom Issue Just Released: Find Out Why Berkshire Hathaway Bought Axalta Coating Systems

A brand new issue of our Hedge Fund Wisdom newsletter was just released.  Subscribers please login at www.hedgefundwisdom.com to read it.

Inside The New Q2 2015 Issue

- Equity Analysis of Axalta Coating Systems (AXTA): Warren Buffett's firm bought $560 million worth of this stock during Q2 and it's only trading around 3% higher than where they purchased. Find out why they bought in the new issue.

- Equity Analysis of a Recent Stock Purchase by David Einhorn's Greenlight Capital

- Updated Portfolios of 25 Top Hedge Funds

- Consensus Buy/Sell Lists

- Commentary on Each Fund's Moves With Context


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Hedge Fund Links ~ 8/14/15

The Single Family Office: Creating, Operating & Managing Investments [Richard Wilson]

Julian Robertson's second dalliance with investors disappoints [Reuters]

A look inside Tiger Global's private investment partners [ii alpha]

Eminence Capital discovers alpha in shorts [ValueWalk]

Has David Einhorn lost his mojo? [MebFaber]

Hedge funds bloodied by China rout in worst month since 2011 [Bloomberg]

Behind enemy lines: foreign hedge funds thrive in China [Reuters]

Stung by losses, Kyle Bass hopes for comeback [InsideSources]

Paulson to reap fortune flipping US land banks [Independent]

The transatlantic divide in hedge fund pay [eFinancialCareers]

Meet the new king of subprime lending [WSJ]

Tiger Management partners with Yulan Capital in China [StreetInsider]

Activist investors' secret ally: big mutual funds [WSJ]

Poor returns see investors lose interest in commodity hedge funds [FT]

What We're Reading ~ 8/12/15

Avoiding process drift [A Wealth of Common Sense]

GOOG: Do you trust Larry Page? [Stratechery]

Giving Google room to dream big [NYTimes]

Pichai tapped to run restructured Google within Alphabet [Bloomberg]

Inside SoftBank's struggle to turn around Sprint [WSJ]

A short seller's new target: Canadian housing [Globe and Mail]

Quick pitch on Nationstar (NSM) [Oozing Alpha]

A look at Mondelez [Brooklyn Investor]

And another Mondelez analysis [Elevation Capital]

How baseball's tech team built the future of television [TheVerge]

Ad woes pummel TV firms [WSJ]

Why Disney and ESPN will be OK [Stratechery]

Alan Greenspan sees pending bond market bubble [Bloomberg]

Investors find ways to indirectly profit from start-ups [NYTimes]

IACI: Tinder and the dawn of the dating apocalypse [Vanity Fair]

Why streaming services are so secretive [Bloomberg View]

A profile of Exor's John Elkann [NYTimes]

The power of admitting your own errors [WSJ]

Tiger Global Updates 58.com Stake (WUBA)

Chase Coleman's hedge fund Tiger Global has filed a 13G with the SEC regarding its stake in 58.com (WUBA).  Per the filing, Tiger Global now holds 6.3% of the company with over 13.18 million shares (via over 2.16 million ADR shares and over 8.84 million class A ordinary shares).

This is an increase in their net position size since the end of Q1, but there's a caveat here.  While it seems they've reduced their holdings in the ADR shares from 2.45 million shares down to 2.16 million, they now have exposure to class A shares (8.84 million shares).

It appears as though the bulk of this is due to the fact that Ganji.com has merged with 58.com and Tiger Global held a stake in Ganji as well via its venture capital arm. 

The new filing was made due to activity on August 6th.

We've also recently highlighted some other portfolio activity from Tiger Global here.

Per Google Finance, 58.com is "a holding company. The Company operates an online marketplace serving local merchants and consumers in China. The Company's online marketplace enables local merchants and consumers to connect, share information and conduct business. The Company's online marketplace contains local information in approximately 395 cities, across the content categories, including housing, jobs, used goods, automotive, pets, tickets, yellow pages and other local services. The Company conducts automatic and manual screening using its technology and processes. The Company's users post listings on its marketplace covering a range of services and products on its Website, www.58.com. The Company organizes the listings on its marketplace by content categories, such as jobs, housing, used goods, automotive, yellow pages, pets and tickets.."

Pennant Capital Increases Manitowoc Position

Alan Fournier's hedge fund firm Pennant Capital has filed a 13G with the SEC regarding its position in Manitowoc (MTW).  Per the filing, Pennant now owns 7.4% of the company with over 10.13 million shares.

This means they've increased their position size by almost 2 million shares.  Pennant previously owned over 8.15 million shares of MTW as of the end of the first quarter.  The filing was made due to activity on July 30th.

Two other prominent investors are also involved in the shares.  Glenview added to its Manitowoc stake back in late April.  Late last year, Carl Icahn also got involved in MTW and pushed for the company to split up, which they've agreed to do.

Per Google Finance, Manitowoc is "a multi-industry capital goods manufacturer. The Company operates in two markets: Cranes and Related Products (Crane) and Foodservice Equipment (Foodservice). Crane is a provider of engineered lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes and boom trucks. Foodservice is a manufacturer of commercial foodservice equipment serving the ice, beverage, refrigeration, food-preparation, holding and cooking needs of restaurants, convenience stores, hotels, healthcare and institutional applications. Its Crane products are marketed under the Manitowoc, Grove, Potain, National Crane, Shuttlelift and Manitowoc Crane Care brand names. Its Foodservice products, services and solutions are marketed under Cleveland, Convotherm, Dean, Delfield, Fabristeel, Frymaster, Garland, Inducs, Koolaire, Kolpak, Kysor Panel Systems and U.S. Range, Lincoln, Manitowoc Ice and Merrychef, among others.."

Glenn Greenberg's Brave Warrior Capital Boosts Cimpress Stake

Glenn Greenberg's investment firm Brave Warrior Capital has filed an amended 13G regarding its stake in Cimpress (CMPR).  Per the filing, Brave Warrior now owns 11.6% of the company with over 3.79 million shares.

This is an increase of around 1.26 million shares.  They previously owned 2.53 million shares at the end of the first quarter.  The new filing was made due to activity on July 31st.  At the end of July, shares dropped from around $78 down to around $63 and have since rebounded to $70.

Formerly known as Vistaprint, this business has attracted a few other value investors besides Brave Warrior: Arlington Value and Cantillon Capital. 

Greenberg runs a concentrated portfolio and is previously of Chieftain Capital.  We've briefly detailed what Greenberg looks for in an investment before.

Per Google Finance, Cimpress is "a technology and manufacturing company based in the Netherlands, which provides professional marketing products and services. It is engaged in mass customization and Web-to-print technology. The Company aggregates, via the Internet, large volumes of individually small, customized orders for a spectrum of print, signage, apparel and similar products. Its portfolio of brands is aimed at three target groups: small and micro businesses, graphic professionals, and home and family customers, and includes such brands as Vistaprint, pagemodo, webs, Araprint, Drukwerkdeal.nl, Pixartprinting, Printdeal.be, printi, albelli, FotoKnudsen, and Onskefoto, among others. Its products are available in more than 130 countries.."

Luxor Capital Reduces BJ's Restaurants Stake, Adds To Manitowoc

Hedge fund firm Luxor Capital recently filed two disclosures with the SEC regarding BJ's Restaurants (BJRI) and Manitowoc (MTW).


Luxor Reduces BJ's Restaurants Position

First, Luxor has revealed that they now own 9.8% of BJ's Restaurant (BJRI) with over 2.5 million shares.

This is a reduction in their position size as they owned 3.5 million shares at the end of Q1.  The filing details that Luxor recently sold a block of 1 million BJRI shares to UBS at $50.80.

Per Google Finance, BJ's Restaurants is "owns and operates restaurants. The Company operates under the BJ’s Restaurant & Brewery, BJ’s Restaurant & Brewhouse, BJ’s Pizza & Grill and BJ’s Grill names. The Company owns and operates 158 restaurants. Its menu consists of deep-dish pizza, craft beers and other beers, as well as a range of appetizers, entrees, pastas, sandwiches, specialty salads and desserts, including its Pizookie dessert. Its menu also includes starter salads, handcrafted burgers, sandwiches and tacos, desserts, lunch specials, housemade soups and salads, and gluten-free menu, among others. Its Snacks and Small Bites menu category comprises small plate appetizers and salads and a lower calorie and better for you menu category called Enlightened Entrees."


Luxor Boosts Manitowoc Stake

Second,  Luxor has also disclosed they now own 5% of Manitowoc (MTW) with over 6.82 million shares.  Some of their position is common stock underlying call options.

This is a sizable increase from their previous position size.  Luxor used to own 1.788 million shares of MTW as of the end of the first quarter.  The new filing was due to activity on July 31st.

We also just posted that Pennant Capital increased its Manitowoc stake as well.

Per Google Finance, Manitowoc is "a multi-industry capital goods manufacturer. The Company operates in two markets: Cranes and Related Products (Crane) and Foodservice Equipment (Foodservice). Crane is a provider of engineered lifting equipment for the global construction industry, including lattice-boom cranes, tower cranes, mobile telescopic cranes and boom trucks. Foodservice is a manufacturer of commercial foodservice equipment serving the ice, beverage, refrigeration, food-preparation, holding and cooking needs of restaurants, convenience stores, hotels, healthcare and institutional applications. Its Crane products are marketed under the Manitowoc, Grove, Potain, National Crane, Shuttlelift and Manitowoc Crane Care brand names. Its Foodservice products, services and solutions are marketed under Cleveland, Convotherm, Dean, Delfield, Fabristeel, Frymaster, Garland, Inducs, Koolaire, Kolpak, Kysor Panel Systems and U.S. Range, Lincoln, Manitowoc Ice and Merrychef, among others." 

Warren Buffett's Berkshire Hathaway To Buy Precision Castparts (PCP)

Warren Buffett's Berkshire Hathaway is set to acquire Precision Castparts (PCP) for $37.2 billion, or around $235 per share. 

Speaking with CNBC, Buffett said that the deal started to come together "about five or so weeks ago."  

Buffett's conglomerate has owned PCP for a while now and was out buying more shares in the first quarter of 2015 as shares continued to slide.  PCP has been hit due to declines in its oil and gas business exposure but the vast majority of its focus is in aerospace and that's undoubtedly what drew Berkshire to the name.

Buffett said that one of his portfolio managers, Todd Combs, spearheaded this as he bought shares for Berkshire.

Talking with CNBC, Buffett said that they'll likely do the majority of the deal with cash, and a little bit of debt.  Berkshire likes to keep around $20 billion in cash on hand, so this big buy means they probably won't do any other large deals for another year.


Other 'Winners' In The Deal?

Berkshire wasn't alone in purchasing PCP shares in Q1 either.  As we flagged in the May issue of our Hedge Fund Wisdom newsletter, PCP was a consensus new buy with the likes of Third Point, ValueAct Capital, Soroban Capital, and Farallon Capital initiating new positions.

One other very notable fund was out buying a lot of PCP as well: Lou Simpson's SQ Advisors.  Prior to founding SQ, Simpson worked at Berkshire Hathaway.  Of the above managers, he bet the biggest on PCP on a position size weighted basis, given that he allocated almost 10% of his portfolio to PCP shares.

Other big name institutions were out adding to their existing PCP stakes in Q1 as well, such as Ruane Cunniff (Sequoia Fund).

So while these funds may have 'won' in that they see their PCP shares appreciate a decent amount in a short period of time, some might lament the deal a little bit. 

Some managers were also buying in Q3 and Q4 of 2014 when prices were right around where Buffett is buying PCP out now, so their return isn't great.  Other managers might be sad to see PCP disappear from their portfolios as they saw a long-term opportunity for appreciation within the aerospace industry.  And lastly, all of the managers who just bought in Q1 will now see these gains hit by short-term capital gains tax.

Glenview Capital Increases Tenet Healthcare Stake Again

Larry Robbins' hedge fund firm Glenview Capital has filed a Form 4 with the SEC regarding its position in Tenet Healthcare (THC).  Per the filing, Glenview now owns over 15.49 million shares of THC.

Robbins' firm was out buying shares on August 5th and 6th at prices ranging from $53.75 to $55.  In total, they purchased 697,917 shares.

This is the second time Glenview has added to its THC position this summer.

Per Google Finance, Tenet Healthcare is "a healthcare services company. The Company operates regionally focused, integrated healthcare delivery networks in large urban and suburban markets."

Last week we also detailed additional portfolio activity from Glenview here.

Kyle Bass' Hayman Capital Increases NMI Holdings Position

Kyle Bass' hedge fund firm Hayman Capital has filed a 13D and Form 4 with the SEC regarding its stake in NMI Holdings (NMIH).  Per the 13D, Hayman now owns 12.5% of the company with over 7.37 million shares.

The Form 4 indicates Hayman was out buying on August 5th - 7th at prices between $8.25 and $9.21.  In total, they purchased 1.875 million shares.

We also highlighted some other recent buying from Hayman Capital.

Per Google Finance, NMI Holdings is "provides private mortgage guaranty insurance (MI) in the United States. The Company's primary insurance subsidiary, National Mortgage Insurance Corporation (NMIC), is a MI provider on loans purchased by Fannie Mae and Freddie Mac (collectively the Government-sponsored enterprises or GSEs). The Company's reinsurance subsidiary, National Mortgage Reinsurance Inc One (Re One), provides reinsurance to NMIC on certain loans insured by NMIC. NMIC's residential mortgage insurance products primarily provide first loss protection on loans originated by residential mortgage lenders and sold to the GSEs and on low down payment loans held by portfolio lenders. NMIC offers two principal types of MI, primary and pool. The Company offers two types of primary mortgage insurance products to its customers, flow and non-flow."

Donald Yacktman's Talk at Google: Viewing Stocks as Bonds

Donald Yacktman of Yacktman Asset Management recently had a talk at Google about investing and viewing stocks as bonds.

When talking about investing, Yacktman says that, "You're almost always wrong to some degree." 

He goes on to note, "Conceptually, if you think of what you're doing when you're buying an equity is you're buying two cashflows: the cashflow given out as a dividend and the cashflow that is retained by management or invested on your behalf and that's the wildcard.  And the longer term your investment horizon is, the more important that part of the investment equation becomes.  Because it can affect rates of return over long periods of time."

Yacktman also talks about risk management and conviction, noting that you should always allocate more capital to the ideas you have higher conviction in and where you perceive there to be lower risk.  And then your position sizes on less confident names should obviously be smaller.

The key to investing he says: "Have patience. Have a very long horizon time."

He also goes on to do a Q&A session.

Yacktman said there's 3 opportune times to buy: when the whole market goes down/collapses (like the financial crisis of 2008), an industry shortfall (like 1993 with concerns of changing the healthcare industry), or an individual stock temporarily out of favor.

When he can't find bargains, he says "cash is a residual.  When you think about cash, it shouldn't be because you're trying to predict the market. When you don't have opportunity, sometimes it's better off to just sit on it (cash)."

Embedded below is the video of Yacktman's talk at Google:

Hedge Fund Links ~ 8/7/15

Soros' CIO Scott Bessent to start own hedge fund with $2 billion [Reuters]

ValueAct said to take stake in American Express and also in Smiths Group [Bloomberg & FT]

Citadel's Ken Griffin leaves 2008 tumble far behind [WSJ]

China freezes Citadel's account [Reuters]

JANA Partners slips as event-driven funds lag [ii alpha]

Paulson: gold is now 'fairly valued' [Reuters] 

What we can learn from women-led funds that outperform [InvestmentNews]

What causes performance persistence in hedge fund activism? [SSRN]

Carl Icahn Starts Cheniere Energy Stake; Trims Hologic Position

Carl Icahn has recently filed two 13D's with the SEC regarding recent portfolio activity.


Icahn Starts Cheniere Energy (LNG) Stake

First, Icahn has disclosed a new position in Cheniere Energy (LNG).  Per his 13D filing, Icahn now owns 8.18% of the company with over 19.35 million shares (including shares underlying forward contracts and call options).

The filing was made due to activity on July 27th and contains the standard activist boilerplate that he intends to speak with management and might seek board representation "if appropriate."

Icahn's not alone in his new bet.  Seth Klarman's Baupost Group has been an equity holder for a few quarters now.  Viking Global, Lone Pine Capital, Steadfast Capital, and others are also top holders (this is actually a bit of a hedge fund hotel).

We've also recently highlighted some of Icahn's other portfolio activity here.

Per Google Finance, Hologic is "an energy company engaged in Liquefied natural gas (LNG) businesses. The Company operates through two segments: LNG terminal business, and LNG and natural gas marketing business The Company owns and operates the Sabine Pass LNG terminal in Louisiana through its ownership interest in and management agreements with Cheniere Energy Partners, L.P. (Cheniere Partners), which is a publicly traded limited partnership. The Company owns 100% of the general partner interest in Cheniere Partners and 80.1% of Cheniere Energy Partners LP Holdings, LLC (Cheniere Holdings), which is a publicly traded limited liability company that owns a 55.9% limited partner interest in Cheniere Partners. The Company is engaged in the development of two LNG terminal projects: the Sabine Pass LNG terminal in western Cameron Parish, Louisiana, and the Corpus Christi LNG terminal near Corpus Christi, Texas.."


Also Trims Hologic (HOLX) Position

Second, Icahn filed a second 13D recently regarding his existing position in Hologic (HOLX).   He now owns 9.99% of the company with over 28.15 million shares.

The filing indicates he sold shares on August 4th at $40.47.  His stake now is slightly lower compared to the 34.15 million shares he owned back at the end of the first quarter.

After the sale, he tweeted, "Trimmed our position but remain a huge supporter of Steve MacMillan and the @Hologic ($HOLX) team."

Per Google Finance, Hologic is "a developer, manufacturer and supplier of diagnostics products, medical imaging systems and surgical products. The Company’s business units are focused on diagnostics, breast health, GYN surgical and skeletal health. The Company’s diagnostics products include Aptima family of assays, its ThinPrep system, the Rapid Fetal Fibronectin Test and its Procleix blood screening assays. The Aptima family of assays is used to detect the infectious microorganisms that cause the common sexually transmitted diseases, chlamydia and gonorrhea, certain high-risk strains of human papillomavirus (HPV), and Trichomonas vaginalis, the parasite that causes trichomoniasis. The Company’s GYN surgical products include its NovaSure Endometrial Ablation System and its MyoSure Hysteroscopic Tissue Removal System. The skeletal health products include dual-energy X-ray bone densitometry systems, an ultrasound-based osteoporosis assessment product, and its Fluoroscan mini C-arm imaging products."

You can also view Icahn's latest thoughts on the markets here.

Third Point Increases Baxter Holdings

Earlier this week, we highlighted how Dan Loeb's hedge fund Third Point disclosed a new activist stake in Baxter (BAX).  Third Point just filed an amended 13D and indicates their position size is now even larger.

They now own 9.6% of the company with over 52.5 million shares.  This is up from the 37.92 million shares they disclosed just a few days ago.

Third Point is seeking two board seats in order to help select a new CEO.

For more on this hedge fund, be sure to check out Third Point's Q2 letter.

Kingstown Capital Boosts Ocwen Financial Stake

Michael Blitzer's hedge fund firm Kingstown Capital has filed an amended 13D with the SEC regarding its position in Ocwen Financial (OCN).  Per the filing, Kingstown now owns 9.97% of Ocwen with over 12.5 million shares (though they have an aggregate economic exposure to 14 million shares due to cash-settled total return swaps).

This is up from the 12 million shares they owned at the end of the first quarter. The filing was made due to activity on August 4th.  The return swaps were purchased on August 4th and 5th at prices of $8.0053, $7.6299, and $7.7450.

The 13D contains the standard activist boilerplate that they may meet with management etc.  Kingstown was the largest reported institutional shareholder of OCN shares as of the end of Q1.

Shares of OCN were hit pretty much all throughout 2014 as regulator Benjamin Lawsky came down hard on the company, forcing its Chairman Bill Erbey to resign, among other changes.  OCN fell from $55 to $15 in 2014 and has continued to fall in 2015 down to current levels of $8.11.  Kingstown initiated their position in the first quarter of this year and has just recently bought more.

As we've highlighted earlier this year, Kingstown was also involved in shares of Home Loan Servicing Solutions (HLSS), another one of the companies that was in Bill Erbey's previous empire.

Per Google Finance, Ocwen Financial is "a financial services holding company. The Company through its subsidiaries is engaged in the servicing and origination of mortgage loans. The Company operates in three segments such as, servicing, lending, and corporate items and other. The Company develops programs, such as Shared Appreciation Modification (SAM) which incorporates principal reductions and lower payments for borrowers while providing a net present value positive loss mitigation outcome for investors, including the ability to recoup losses if property values increase over time."

Bill Ackman's Pershing Square Takes Mondelez Stake

Bill Ackman's activist hedge fund Pershing Square Capital has filed a 13D with the SEC regarding shares of Mondelez (MDLZ).  Per the filing, Pershing Square owns 7.5% of Mondelez with over 120.26 million shares.  This is a newly disclosed position.

The filing indicates they sold puts and bought call options in late June and early July and they also bought common stock.

It also says that as of August 6th, Pershing own over 64.8 million over the counter forward purchase contracts with a net purchase price of over $2.5 billion with Nomura as a counterparty. There's quite a few transactions and you can view them here.

The 13D also contains the normal activist boilerplate that they intend to engage with management.

Mondelez was spun-off from the original Kraft entity and represents more of the 'snacks and sweets' business.

The standalone Kraft Foods, on the other hand, is mainly their branded foods consumer staples company.  KRFT merged with Heinz recently under the guidance of 3G Capital and Berkshire Hathaway.  So now you have activists at both of the entities.

For more on Pershing Square, head to Bill Ackman's comments at the recent Delivering Alpha conference.

Third Point Goes Activist on Baxter

Dan Loeb's hedge fund firm Third Point has filed a 13D with the SEC regarding Baxter (BAX).  Per the filing, Third Point now owns 7% of the company with over 37.9 million shares.

This is a new position for the hedge fund and the filing was made due to activity on August 4th.  The filing also details their trading activity and Loeb's firm was out buying BAX in mid-to-late June and throughout July.  They really ramped up buying in the first few days of August around $40.49.

Third Point is seeking to gain two board seats in order to help in selecting a new CEO and sent a letter to Baxter. You can view the letter here

For more from Loeb's firm, head to Third Point's Q2 letter.

Glenview Capital Cuts VCA Position Size

Larry Robbins' hedge fund firm Glenview Capital has filed an amended 13G with the SEC regarding its position in VCA (WOOF).  Per the filing, Glenview now owns 9.83% of the company with a little over 8 million shares.

An additional Form 4 filed with the SEC indicates Glenview sold 4,720,800 shares on August 3rd, with the bulk of the trade being made at $56.33.

Earlier this week, we also highlighted some other Glenview portfolio activity.

Per Google Finance, VCA is "a national animal healthcare company operating in the United States and Canada. The Company operates in two segments: animal hospital and laboratory. The Company provides veterinary services and diagnostic testing to support veterinary care and also sells diagnostic imaging equipment and other medical technology products and related services to the veterinary market. The Company provides communication marketing solutions and other services to the veterinary community. The Company's animal hospital offer general medical and surgical services pharmaceutical products and performs pet wellness programs. The Company's communication and marketing solutions business provides services to veterinary practices pharmaceutical manufacturers and the pet owning community. The Company's network of veterinary diagnostic laboratories provides sophisticated testing and consulting services."

Marc Lasry on Wall Street Week: "Huge Opportunities" in Energy Debt & Europe

Anthony Scaramucci and Gary Kaminsky this week on Wall Street Week interviewed Marc Lasry of Avenue Capital, which now has $14 billion in assets under management after initially starting with around $7 million.  Lasry likes to take fixed income risk but generate equity-like returns.


Lasry noted that he's been seeing "huge opportunities" in the energy sector, mainly due to the fact that oil's gone down.  He says you don't want to be an equity holder, but you want to be a senior debt holder.

He's also finding some investments in Europe as the banks over there are deleveraging.  Avenue is buying assets at 60-70 cents on the dollar from people who are required to sell due to regulatory pressure.

On what he looks for in an investment:  "We're trying to buy something we think is worth 100 cents for 60 cents on the dollar.  So you're always trying to buy something at a discount to what you think the asset value is.  And you can only do that when you're buying from non-economic sellers... someone who's nervous or somebody who has to sell.  So you need to have a lot of drama or issues around the world."

Embedded below is the video of Marc Lasry's appearance on Wall Street Week:



Be sure to check out previous Wall Street Week episodes like their interview with David Rubenstein as well as Steve Einhorn here.

Pennant Capital Trims Universal Stainless & Alloy Products Position

Alan Fournier's hedge fund firm Pennant Capital has filed a Form 4 with the SEC regarding its position in Universal Stainless & Alloy Products (USAP).  Per the filing, Pennant trimmed its stake in the company slightly on July 30th, 31st, and August 3rd.

In total, the hedge fund sold 60,800 shares at prices of $13.92, $13.74, and $13.06.  After the sales, Pennant still owns 1,082,221 shares of USAP.  Shares of the company are down over 50% year-to-date for 2015.

Per Google Finance, Universal Stainless & Alloy Products "manufactures and markets semi-finished and finished specialty steel products, including stainless steel, nickel alloys, tool steel and certain other alloyed steels. The Company's manufacturing process involves melting, remelting, heat treating, hot and cold rolling, forging, machining and cold drawing of semi-finished and finished specialty steels. The Company's products are sold to service centers, forgers, rerollers, original equipment manufacturers (OEMs) and wire redrawers. The Company also performs conversion services on materials supplied by customers. The Company's products are manufactured in a range of grades and melt qualities, including argon oxygen decarburization (AOD), electro-slag remelted (ESR), vacuum induction melting (VIM) and vacuum-arc remelted (VAR)."