M10 BARRON’S July22,2019
13D Filings
Investors Report to the SEC
13Ds are filed with the Securities and Exchange Commission within 10 days of an entity’s
attaining a greater than 5% position in any class of a company’s securities. Subsequent
changes in holdings or intentions must be reported in amended filings. This material has
been extracted from filings released by the SEC from July 11through 17. Source:
InsiderScore.com
Activist Holdings
Diversified Restaurant Holdings (SAUC)
Kanen Wealth Management disclosed on
July 15 that it held 1,825,029 shares, or
5.5%, of the outstanding stock of Diversi-
fied Restaurant Holdings, a Buffalo Wild
Wing franchisee holding company. The
stake includes 672,729 shares purchased
from July 2 through July 10 at prices
ranging from 70 cents to 77 cents.
In a letter, Kanen Wealth told Diversi-
fied Restaurant’s board of directors that
it wishes “to assist [Diversfied Restau-
rant] to reduce and refinance its existing
debt.” Doing this, Kanen said, would re-
sult in a favorable outcome “for all stock-
holders.”
To that end, Kanen has offered to buy
equity “at favorable terms” from Diversi-
fied Restaurant that will ultimately allow
the company refinance a loan that is due
to mature in just under a year.
Kanen continued that “absent assis-
tance from [it] or another like-minded in-
vestor, the risk to stockholders goes up
each day.”
Kanen concluded that it looks forward
to scheduling discussions with Diversified
Restaurant about the offer, which, Kanen
contends, “is in the best interest” of all
shareholders.
Increases in Holdings
Destination XL Group (DXLG)
Cannell Capital purchased 163,429 shares
of the specialty men’s retailer at prices
ranging from $1.57 and $1.73, from May
30 through June 25.
Cannell now holds 5,412,754 shares.
That gives it a 10.9% position in the ap-
parel company.
Hertz Global Holdings (HTZ)
On July 12, Icahn Capital disclosed that
it had boosted its stake in the auto rental
company to 40,964,325 shares, 28.8% of the
outstanding stock.
Icahn Capital’s larger position re-
sulted from the exercise of 16,700,366
rights on July 12 at a price of $12.95
each, a level that Hertz Global has
traded above since June 4.
Sunrun (RUN)
Tiger Global Management lifted its
holding in the solar power provider to
19%, through purchases of shares from
May 17 through June 28. During that
span, Tiger Global acquired 3,285,000
shares at prices ranging from $15.64 to
$18.70. That raised its position to
21,868,400 common shares.
Tiger Global said that it is a passive in-
vestor and has “no plan or proposal which
relates to” the latest investments.
Karuna Therapeutics (KRTX)
ARCH Venture revealed an increased po-
sition in the newly public, clinical-stage
biopharmaceutical company.
ARCH’s 3,362,872 shares are equal to
14.4% of the outstanding stock. That
stake was expanded on July 2 by the pur-
chase of 200,000 shares during Karuna’s
initial public offering by a pair of ARCH’s
wholly owned affiliates. The price: $16 a
share.
ARCH cited no current plans for Kar-
una, and didn’t offer any other details of
the investment.
Gulfport Energy (GPOR)
Firefly Venture Partners disclosed on July
16 that it had purchased 1,606,000 shares of
the oil and natural-gas exploration company
from June 25 through July 16.
The transactions, done at prices that
ranged from $4.10 to $4.83, raised Firefly’s
position to 9.6%. In all, it now owns
15,306,000 common shares of Gulfport En-
ergy, including 2,600,000 underlying exer-
cisable call options.
Chaparral Energy (CHAP)
Strategic Value Partners again raised its
stake in the oil and natural-gas explorer,
by buying 751,053 shares from July 9
through July 16.
Strategic Value paid $5.40 to $5.82 a
share. The transactions upped its holding
to 13,119,885 shares, or 28.3% of Chapar-
ral’s common.
Strategic Value has steadily been lift-
ing its position in the energy company
since it initially reported an approximate
7.8 million-share stake in October 2018,
then equal to 16.8% of the outstanding
stock.
Decreases in Holdings
Amber Road (AMBR)
On July 11, Gardner Lewis Asset Man-
agement disclosed that it had tendered its
entire position in the cloud-based, global
trade-management firm to E2Open on
July 2.
On June 3, E2Open had made a cash
tender offer for all of Amber Road’s
shares for $13.05 apiece, valuing the com-
pany at $425 million.
Gardner Lewis had initiated an 8.8%
stake in Amber Road back in May, by ob-
taining 2,512,629 shares.
HomeStreet (HMST)
Roaring Blue Lion Capital revealed on
July 11 that it had sold its entire stake in
Homestreet back to the company, through
a purchase agreement.
Through the agreement, entered on
June 10, Blue Lion Capital sold its
1,677,401 shares to HomeStreet, a bank-
ing-services provider, for $31.16 apiece.
In turn, Blue Lion Capital agreed to
abide by a standstill period that pre-
cludes it from possessing more than 2%
of HomeStreet’s common stock for three
years.
In line with the sale, Blue Lion with-
drew its two nominees for election to
HomeStreet’s board at this year’s annual
shareholders meeting.
Great Elm Capital (GECC)
MAST Capital Management continued to
reduce its interest in the investment man-
agement concern, through sales from June
6 through July 9.
After disclosing an approximately 2.2
million share stake in early March, MAST
has steadily trimmed its position, most re-
cently through the sale of 104,300 shares at
prices ranging from $8.51 to $8.93. It still
owns 911,208 shares, or nearly 8.8% of the
tradable stock.
InsiderScore.com is a provider of insider,
institutional, and stock-buyback data,
analytics, and research. For a free analysis of
your holdings, visit InsiderScore.com or
call 866-400-9595.
The Activist Spotlight
Symantec (ticker: SYMC)
Business: cyber security
Investor's Average Cost:
$19.91 a share
Stock-Market Value:
$14.4 billion ($23.30/share)
What's Happening: Since its
Aug. 16, 2018, 13D filing, Starboard
Value has received three board seats,
and one of its nominees, Rick Hill,
has been named interim CEO.
Key Numbers:
$19.31: closing price of SYMC on May
9, when it announced earnings and
the appointment of Hill
145.6% : Starboard’s return on its in
vestment in Tessera Technologies,
where Hill was chairman during the in-
vestment, versus 49.6% for the S&P
500
79.5% : Starboard’s return on an invest-
ment in Marvell Technology Group
(MRVL), where Hill was named chair-
man, versus 43.6% for the S&P 500
$28.25 a share : the initial bid Broad-
com (AVGO) reportedly offered for
SYMC
Behind the Scenes : On May 9,
Symantec announced underwhelming,
but not horrible, financial results and
guidance and the departure of its
CEO, to be replaced by Hill. The
stock traded down significantly, in
large part because the market was fo-
cused on the financial data and was
unfamiliar with Hill’s record.
Hill has been one of Starboard’s
most valuable consultants and is often
the person it uses for board and oper-
ations assistance in technology invest-
ments. He has a keen focus on share-
holder value. Formerly the CEO of
Novellus Systems, he first partnered
with Starboard on Tessera. Most re-
cently, he restructured Marvell Tech-
nology for Starboard.
In his short tenure as Symantec’s
chief, that company already has re-
ceived takeover interest from Broad-
com, but for less than SYMC would
accept. —KENNETHSQUIRE
The 13D Activist Fund, a mutual
fund run by an affiliate of the author
and not connected to Barron’s , has a
long position inSymantec. Inaddition,
the author publishes and sells 13D
research reports, whose buyers may
include representatives of
participants in, and targets of,
shareholder activism.
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